For increasing energy self-sufficiency rate and reducing CO2 emission, China Government particularly pay attention to the development and utilization of shale gas. At the end of 2011, the State Council approved the shale gas as an independent mineral, which means the exploration and development of shale gas is no longer affected by the oil and gas franchise constraints, it opens the door of policy for private capitals enter the shale gas development and utilization. In addition, according to the <Catalogue for the Guidance of Foreign Investment Industries> (2011 Edition), the shale gas exploration, development (joint venture & cooperation) has been included in encouraged foreign investment industry directory.
In March 2012, National Energy Administration jointly issued national "12th FYP" shale gas development program and set target to reach 6.5 billion Nm3 shale gas output by 2015, and strive for 60-100 billion Nm3 output by 2020. On Sep. 10th 2012, China's Ministry of Land & Resources (MLR) published the "MLR Shale Gas Exploring Right Bidding Notice". This is the 2nd round shale gas exploring right bidding after the first round in 2011. The date of bid opening is Oct. 25, 2012. According to the notice, the totalized area of the bidding is 20002 km2, which including 20 blocks located in 8 provinces: Chongqing (3), Guizhou (5), Hubei (2), Hunan (5), Jiangxi (1), Zhejiang (1), Anhui (1) and Henan (2). Each bidder is allowed to bid for not more than 2 blocks.
ASIACHEM estimates that encouraged by Governmental policies and driven by the market, China will have a booming wave of shale gas exploration and development. Through technical cooperation with foreign companies, and learn the successful experiences of U.S, as well as take the "Late-developing Advantage", the process of China shale gas development and utilization will be greatly accelerated. In the future, if China can achieve the low cost and large scale exploration of Shale Gas, the natural gas industry will be changed. The imports of pipeline gas and LNG, as well as the natural gas based chemical industry and coal to SNG (synthetic natural gas) will be impacted.
"2012 China Shale Gas Conference" will be held September 26-27 in Beijing. Meanwhile, ASIACHEM will release <China Shale Gas Development Updates & Analysis 2012> Report (both in English & Chinese), and provide to the delegates as a complimentary value-added service. At the upcoming event, the experts from MLR, PetroChina, Sinopec and China CBM will discuss the trends of the shale gas policies, the second round of shale gas bidding, and the opportunities & challenges of shale gas development in China.