China Huadian, Hunan Coal Geological Bureau form Shale JV

China Huadian Engineering Co. Ltd. and Hunan Coal Geological Bureau have formed a shale gas joint venture (JV) named Hunan Provincial Shale Gas Development Co. Ltd, according to Hunan Daily.

Province of Hunan is rich in shale gas resources, with reserves of about 11 trillion cubic meters in theory. The JV will focus on northwestern Hunan as the priority development area. Plans to develop the area of Dongting Lake. Centural Hunan which is to be strengthened for the resources exploration and evaluation, have been included into national shale gas development and utilization planning.

On Feb 28, 2012, China Huadian Corp has inked a framework agreement with Hunan to tap shale gas resources in the southern province, as the state-owned power generating firm was stepping up efforts to look for new opportunities beyond its traditional thermal power business. Huadian selected two favorable areas for the implementation of the exploration, development and comprehensive utilization of distributed energy demonstration zones.