China Should Speed Up Shale Gas Production

A senior Chinese official on Monday called for the country to speed up mass production of shale gas with its own technologies to ensure adequate energy supply.

Xinhua quoted deputy head of the National Development and Reform Commission as saying that efforts must be made to achieve early breakthroughs in the appraisal, exploration and development of shale gas resources, as well as to come up with measures to ensure environmental safety.

Liu also stressed the importance of manufacturing key mining equipment with indigenous Chinese technology. Factories should increase investment and production to guarantee success in meeting the national output target of 6.5 billion cubic meters for 2015, he added.

Liu stressed that the shale gas industry should be open to all types of investors. The departments involved should offer tax and fiscal incentives to encourage development, Liu said.

China's shale gas reserves are estimated to amount to 31 trillion cubic meters, equivalent to the total amount of conventional natural gas. The Sichuan Basin, the Ordos Basin, the Tarim Basin, the western Hubei-Eastern Chongqing area, and the provinces of Guizhou and Hunan boast huge reserves of this unconventional gas source.