Plan aims to push shale gas exploration
By Richard Fu |
March 17, 2012, Saturday
|
Print Edition
Print Edition
CHINA will reduce mining fee and remit import tax on key equipment for shale gas exploration as part of efforts to tap the unconventional fuel.
According to a five-year industry plan released yesterday, the government will also prioritize land approval for shale gas projects and allow market prices for shale gas at the factory gate to encourage production.
China, which is estimated to hold 25.08 trillion cubic meters of technically recoverable deposits, the world's largest, has yet to produce any shale gas commercially.
The fuel, tightly trapped in rock formations, has become a game changer in the United States where advances in production techniques have overturned America's dependence on gas imports.
"American technologies may not be fully applicable in China's shale gas formations, and they need to be transformed," said Zhang Yuqing, head of the oil and gas department under the National Energy Administration, which drafted the industry plan.
Analysts have said China faces unique geological, technical and commercial challenges in its shale gas sector, as more reforms are needed to spur investment and technology to commercialize the fuel.
The plan also confirmed that China aims to produce 6.5 billion cubic meters of shale gas annually by 2015 and 60-100 billion cubic meters by 2020, in line with earlier reports.
According to a five-year industry plan released yesterday, the government will also prioritize land approval for shale gas projects and allow market prices for shale gas at the factory gate to encourage production.
China, which is estimated to hold 25.08 trillion cubic meters of technically recoverable deposits, the world's largest, has yet to produce any shale gas commercially.
The fuel, tightly trapped in rock formations, has become a game changer in the United States where advances in production techniques have overturned America's dependence on gas imports.
"American technologies may not be fully applicable in China's shale gas formations, and they need to be transformed," said Zhang Yuqing, head of the oil and gas department under the National Energy Administration, which drafted the industry plan.
Analysts have said China faces unique geological, technical and commercial challenges in its shale gas sector, as more reforms are needed to spur investment and technology to commercialize the fuel.
The plan also confirmed that China aims to produce 6.5 billion cubic meters of shale gas annually by 2015 and 60-100 billion cubic meters by 2020, in line with earlier reports.
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