China May Hold Shale Gas Auctions by February End

China may hold its second auction of shale gas exploration areas as early as this month.

Bloomberg has reported that the government plans to hold the tender by the end of February or in early March. The sale was originally scheduled for the fourth quarter of 2011.

China, yet to produce shale gas commercially, may hold huge reserves of shale gas with estimates pegging the number at about 31-36 trillion cubic meters.

China Petroleum & Chemical Corp. (Sinopec) and Henan Provincial Coal Seam Gas Development and Utilization Co. won rights to explore two areas in the country’s first shale-gas auction in June. The land ministry will likely offer more than 20 blocks in the second round.

China is planning to step up its efforts to exploit and promote shale gas this year.