Government Subsidy for Shale Gas Exploration in China

Release Date: 07-Nov-2012



The authorities in China have decided to subsidize the shale gas exploration activities in order to impel the commercial development of world’s largest shale gas reserves in coming years. The Ministry of Finance will offer Yuan 0.4 (6.3 Cents) for every cubic meter of shale gas developed during the 2012-2015 period. China’s shale gas reserves are spread over almost all of the country with an estimated amount of about 1275 Trillion Cubic Feet. Although shale gas is still in exploratory phase in China being led by Sinopec, they plan to start production by 2013 and considerable production by 2015 with an aim of taking a major jump in 2020.

China has already spent around Yuan 1.4 Billion (US$ 222 Million) in developing its domestic resources, of which Yuan 100 Million was spent by the government and another Yuan 1.3 Billion was shelled out by the National oil companies. Most of this was directed in developing the exploration and production in the Sichuan basin, estimated to be the world’s largest shale gas reserve.

A recent research study by KuicK Research gives comprehensive insight on the factors that will be instrumental in giving China the much required thrust to its economy through shale gas development. The “China Shale Gas Market Analysis” research report gives a balanced future scenario of the Chinese shale gas market with the possibilities of high, medium and low production, giving the reader an insight into the market as the future case may be. It also gives the companies involved in shale gas development in China, led by Sinopec that will play the major role in making it a runaway success, much on the lines of the US. The report also takes a look at the political, social and economic factors that might affect shale gas development in the country and also provides a sneak peek into the technological advancements that are required by China. The report is a comprehensive read covering all aspects of Chinese shale gas development and showing the imminent path that the shale gas will take in China.

For more information visit “China Shale Gas Market Analysis”.

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