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SZ China Natural Gas Bi-weekly Report Mar 1-15,2012
[Monday, Apr. 2, 2012] PRINT EMAIL FAV PDF
 
China Seeks ‘Breakthroughs’ In Developing Shale-Gas Resources
 
China, holder of the world’s biggest shale-gas resources, is gauging reserves and acquiring exploration expertise as it seeks “breakthroughs” in developing the unconventional fuel in the 10 years ending 2025.
 
The foundation for using gas found in shale formations will be laid by 2015, Liu Tienan, head of the National Energy Administration, said in Beijing today while attending a session of the Chinese People’s Political Consultative Conference, China’s top political advisory body.
 
China, which has yet to produce shale gas commercially, aims to triple the use of natural gas by 2020 to 10 percent of energy consumption to curb pollution. The country plans to start developing shale-gas resources by 2015, and accelerate its extraction by the end of the decade, the Ministry of Land and Resources said on March 1.
 
PetroChina Co., has opened a few wells in southwestern Sichuan province and output has been “OK,” said Liu, who is also vice chairman of the National Development & Reform Commission, China’s top economic planning agency.
 
China began shale-gas exploration in December 2009 by drilling the first well, Wei 201, in Sichuan, China National Petroleum Corp., the parent of Hong Kong-listed PetroChina, said on July 19. CNPC agreed in June to form a venture with Royal Dutch Shell Plc to improve its drilling efficiency after taking 11 months to complete the country’s first shale well.
 
China needs to boost cooperation with foreign companies to develop its unconventional gas resources; Liu was cited by CNPC in July as saying. Cnooc Ltd., China’s biggest offshore energy explorer, plans to increase investments in North American shale projects to acquire technology to develop China fields, Chairman Wang Yilin said on March 5.
  
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