Shell Plc plans to take part in China’s unconventional gas exploitation projects, including shale gas.
“I am anxiously waiting for the second shale gas tender,” said Lim Haw-kuang, executive chairman of Shell China Group.
Later this year the Ministry of Land and Resources will open another public tender for the sale of shale gas. The Ministry believes that the bidding, which is expected to begin at the end of July, will feed the US increasing energy appetite. This second public tender may ne opened partially to oversea companies, but Shell declared it is not registered as a bidder.
In March Shell signed a shale gas production sharing contract with China National Petroleum Corp, according to which both companies will work together to develop and produce shale gas in the Fushun-Yongchuan block in the Sichuan Basin.
According to Jiang Xinmin, the deputy director of the Energy Research Institute, the first auction offered four blocks, but the second one has prepared 17 blocks, situated different areas, including the provinces of Anhui and Hunan.
It is estimated that China has 25.1 trillion cubic meters of exploitable shale gas resources, a number that exceeds the 24.4 trillion cubic meters reserves in the US.