Urban gas in China mainly includes liquefied petroleum gas, natural gas and artificial gas. In 2005, the proportion of three gases in urban population was 665,438 0.09%, 24.09% and 65,438 0.82% respectively. Natural gas has become the main variety of urban gas market because of its cleanliness and environmental protection. At present, natural gas consumption is mainly concentrated in the fields of chemical industry, city gas, industrial fuel and power generation. In the case of shortage of natural gas, the national policy is mainly to meet the needs of urban gas. Due to a series of inherent defects, such as high production cost, serious pollution emission during production and unstable combustion quality, with the increasing attention of the whole society to environmental protection, energy saving and emission reduction and the gradual improvement of combustion quality requirements, artificial gas has been replaced by natural gas and household liquefied gas, and is gradually fading out of the gas market.

The city gas market includes commodity gas, residential gas and automobile fuel. For commercial gas and residential gas, what kind of fuel resources to choose, users consider the convenience of use and whether it meets environmental standards. Business users are mainly institutions, schools, factories, restaurants, restaurants and other units, which need gas for cooking or heating. At present, commercial users in China mainly use artificial gas, liquefied petroleum gas, coal and natural gas. The residential gas in China is mainly artificial gas, liquefied petroleum gas and natural gas. The ideal reference energy of coalbed methane is natural gas, because natural gas is equivalent to coalbed methane in combustion calorific value and environmental effect.

In city gas, the main alternative fuels of coalbed methane are gas, liquefied petroleum gas and natural gas. Coalbed methane can replace natural gas, which is very close to artificial gas and liquefied petroleum gas in performance, and the expenditure on stoves is basically the same. Therefore, when evaluating the market value of coalbed methane, the calorific value of coalbed methane can be compared with other alternative fuels, so as to calculate the market value of coalbed methane. The calculation formula is

Study on Industrialization of Coalbed Methane in China

Among them: P coalbed methane is the market value of coalbed methane; P the price of alternative fuels as alternative fuels; H coalbed methane is the calorific value of coalbed methane; H alternative fuel is the calorific value of alternative fuel.

Since the calorific value of coalbed methane is equivalent to that of natural gas, assuming that the calorific value of coalbed methane combustion 1m3 is 8000kcalth, according to the price and calorific value analysis of alternative fuels in Table 8-3, it is concluded that the market value of coalbed methane in China's urban gas market should be 2. 10 ~ 3.90 yuan /m3 (residential users) and 2.64 ~ 3.5 1.

Table 8-3 Average selling price and calorific value of coal-bed methane alternative fuel for urban gas users in China in 2006 [33]

Note: In 2006, the prices of natural gas for urban residents in China were different, such as 1.90 yuan /m3 in Beijing, 2.20 yuan /m3 in Tianjin, 2. 10 yuan /m3 in Shanghai and 2.30 yuan /m3 in Wuhan. The average price is listed in the table, as well as the average price of artificial gas and liquefied petroleum gas, which varies from city to city. Since April 1 day, 2007, the price of civil natural gas in Beijing has been adjusted to 2.05 yuan/cubic meter.