16 Aug China to build shale gas bases and issue further hydrocarbon tenders
China is aiming to develop its shale gas industry by building two bases in the South of the country, while opening up further tenders for oil and gas exploration blocks.
Speaking at a conference in the capital Beijing, officials from the Ministry of Land Resources announced the Asian powerhouse’s new objectives for the resources sector.
Ministers revealed that commercial production is approaching at two shale gas facilities in the cities of Anye in Guizhou province and Yichang in Hubei province.
The latest direction in China’s oil and gas industry comes as the country looks to replace its aging crude oil production wells with new natural gas and light crude reserves.
China is seeking to encourage private firms to invest in new shale gas exploration projects, while the government from the Xinjiang region in the Northwest is planning to start a second round of oil and gas block auctions.
As part of its latest Five-Year Plan for natural gas, the government aims to increase natural gas to 10% of the nation’s energy mix by 2020, up from 5.9% in 2015.