RIA Novosti: China
Shale gas extraction in China is facing an increasing number of difficulties, dampening the enthusiasm of state oil and gas giants and foreign investors, South China Morning Post reported Monday.
"The challenges to the growth of shale gas [production] in China include geography and lack of abundant and readily available water close to the reserves," the South China Morning Post cited Tom Deegan, an adviser to mainland state firms on energy deals, as saying.
Simon Henry, chief financial officer of European oil and gas giant Royal Dutch Shell, also voiced concerns over the extraction of shale gas in Sichuan, a province in southwestern China, and said the company's investment in its joint exploration project with Chinese state-owned oil and gas corporation PetroChina would be cut.
"In Sichuan, progress has been slower and more difficult than we might have hoped: partly for geological reasons, partly due to challenges operating in the highly populated agricultural region," Bloomberg quoted Henry as saying Sunday. "It's likely it will be smaller than originally envisaged."