FT: China’s Vast Shale Gas Potential Limited by Pipeline Infrastructure Obstacles

The infrastructure as well as the geological differences that exist between China and the US are likely to make the PRC’s development of its vast and largely-untapped shale gas reserves follow a slower growth curve than the boom that has recently swept through the American shale gas sector, according to a number of industry experts interviewed by mergermarket. These hard facts are likely to disappoint the many US-based, natural gas exploration and production companies as well as the many companies in their supply chain which had been eagerly anticipating a major opportunity to export their products and services to the energy-hungry, emerging economic powerhouse.

Earlier this month, China’s Ministry of Land and Resources announced its assessment of shale gas reserves in the country, having appraised potentially recoverable resources of 25.1 trillion cubic meters. The estimate is lower than previous estimates, but still believed to be the largest in the world. MORE