Gulf Oil and Gas accountACCOUNT

Key State Firms Winners in China Shale Gas Tenders

Source: Reuters 12/6/2012, Location: Asia

Big state Chinese power firms, such as the Huadian Group and top coal producer the Shenhua Group, have been named among the winners of the country's second shale gas auction, the Ministry of Land and Resources announced on Thursday.

China, the world's top energy user, has yet to start large-scale shale production, but is believed to hold the world's largest reserves of the gas, trapped in rocks and requiring a technology called hydraulic fracturing, or fracking, to unleash.

The ministry announced the tender winners for 19 exploration blocks on its website (, with three companies assigned to each block.

Also among the 57 names was the coalbed methane subsidiary of the China National Petroleum Corporation, China's biggest oil firm, and the Hunan Valin Group, a state-owned steel producer.

The State Development and Investment Corporation, a resource-oriented investment group, was also granted exploration rights in Chongqing, but few of the other winners could be considered household names, even in the energy sector.

The presence of so many non-oil firms on the list could provide lucrative opportunities for service companies such as Schlumberger, Halliburton and China's Anton Oilfield Services Group.

China's 2011-2015 "five-year plan" for the natural gas sector, published earlier this week, says the country is "laying the foundations" for large-scale development of the shale gas sector over the period from 2016 to 2020.

China would aim to raise shale gas production capacity to 6.5 billion cubic metres by 2015, it said, or roughly 6 percent of its total gas production now.

Beijing estimates the country has 25.08 trillion cubic metres of potentially recoverable shale gas resources.

As many as 83 companies made 152 bids during the second auction for the right to explore shale gas in a tender that closed on Oct. 25.

A total of 20 blocks with a total area of 20,002 square km (7,722 square miles) was originally up for grabs, but one was taken out of the running after failing to attract enough bids.

Shale Gas News in China >>

China >>  8/12/2019 - China based offshore and subsea solutions company, COOEC Offshore, has formed an alliance with international oilfield services company, Expro. The for...
India >>  8/6/2019 - BP and Reliance Industries Limited (RIL) have agreed to form a new joint venture that will include a retail service station network and aviation fuels...

Russia >>  8/2/2019 - Saipem has reached an agreement with Technip France and NIPIgaspererabotka to participate in the Joint Venture for the realization of the Arctic LNG 2...
China >>  7/29/2019 - TechnipFMC celebrated the first steel cut of the manifolds and subsea structures for CNOOC’s Liuhua 16-2 Oilfields Development Project recently. The m...

Russia >>  7/23/2019 - TechnipFMC has been awarded a major Engineering, Procurement and Construction (EPC) contract by Novatek and its partners for the Arctic LNG 2 project ...

Related Categories: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

Related Articles: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

China Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 |

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.