Shell Eager to Participate in China's Shale Gas Projects

Royal Dutch Shell is eager to participate in China's unconventional gas exploitation projects, especially shale gas

"I am anxiously waiting for the second shale gas tender," China Daily quoted Lim Haw-kuang, executive chairman of Shell China Group as saying.

The second public tender for sale of shale gas, scheduled to take place as early as end of this month, may open the sector partially to foreign companies. However, Shell confirmed it is not registered as a bidder.

In March, Shell signed China's first shale gas production sharing contract with China National Petroleum Corp, the nation's biggest oil company. Both sides will cooperate to develop and produce shale gas in the Fushun-Yongchuan block in the Sichuan Basin, an area covering about 3,500 square kilometers.

Compared to the first auction, which offered four blocks, the second tender may offer about 17 blocks, Chian Daily said.

China is estimated to have 25.1 trillion cubic meters of exploitable shale gas resources, exceeding the 24.4 trillion cu m reserves in the United States, and making it the country with the world's biggest reserves.