China to Renew Subsidy on Shale Gas Exploration

China will renew subsidies on shale gas exploration as part of efforts to optimize the country's energy structure, Xinhua news agency reported Thursday citing a Ministry of Finance statement.

The Ministry said that a subsidy of 0.3 yuan ($0.049) will be offered for every cubic meter of shale gas developed by enterprises during the 2016-2018 period, down from the 0.4 yuan provided for the 2012-2015 period.

The subsidy will be further lowered during 2019-2020 to 0.2 yuan, the Ministry said.

The policy will be adjusted according to the sector's growth, technology, and changes in cost, Xinhua quoted the Ministry as saying.

Exploration of shale gas is gathered speed in recent years in China. Last year, Sinopec’s Fuling field was verified by Chinese government as country’s largest shale gas play. The Ministry of Land and Resources (MLR) verified proven reserves of nearly 107 billion cubic metres (bcm) in the Fuling shale gas field. 

Last month, MLR said that China discovered 26.67 billion cubic meters (bcm) of technologically recoverable shale gas reserves in 2014,