Business     

China to accelerate shale gas industrialization

Xinhua, June 26, 2012

• A senior Chinese official on Monday called for the country to speed up mass production of shale gas with its own technologies to ensure adequate energy supply.

  Efforts must be made to achieve early breakthroughs in the appraisal, exploration and development of shale gas resources, as well as to come up with measures to ensure environmental safety, Liu Tienan, deputy head of the National Development and Reform Commission, said at a meeting.

  Liu, also head of the National Energy Administration, underlined the necessity to manufacture key mining equipment with indigenous Chinese technology.

  Factories should increase investment and production to guarantee success in meeting the national output target of 6.5 billion cubic meters for 2015.

  Liu stressed that the shale gas industry should be open to all types of investors. The departments involved should offer tax and fiscal incentives to encourage development.

  Shale gas, a clean and high-efficiency energy resource, is produced from shale through a complicated process called hydraulic fracturing, or "fracking."

  China's rich reserves of shale gas are estimated to amount to 31 trillion cubic meters, equivalent to the total amount of conventional natural gas. The Sichuan Basin, the Ordos Basin, the Tarim Basin, the western Hubei-Eastern Chongqing area, and the provinces of Guizhou and Hunan boast huge stores of the substance, a survey by the Ministry of Land and Resources has showed.

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