China to Develop Shale Gas Exploration Supporting Policies
China will develop policies supporting shale gas exploration during the 12th Five-Year Plan period (2011 to 2015), said Zhao Zhiming, deputy chairman of China Petroleum and Petrochemical Equipment Industry Association.
Zhao made the remarks at the 11th China International Petroleum and Petrochemical Technology and Equipment Exhibition (CIPPE), saying that a variety of measures will be given to encourage companies to develop the unconventional resource.
Despite achievements in shale gas exploration during the 11th Five-Year Plan period (2010 to 2015), China still lags far behind of developed countries in the area, Zhao said.
During the years to 2015, China will reinforce policy support to shale gas exploration in a bid to secure the country's oil security, he noted.
The country will encourage companies to increase investment in technological research and development by exempting shale gas resource taxes and granting financial subsidies, he added.
Shale gas is natural gas extracted from shale and has become an increasingly important non-conventional resource over the years.
Industry insiders are optimistic about the prospect of shale gas extraction in China.
Peter Voser, chief executive officer of Royal Dutch Shell PLC said earlier at a forum that the company plans to invest 1 billion US dollars in shale gas exploration in China in the next five years (to read more about this, click HERE).
PetroChina and Royal Dutch Shell PLC signed an agreement to jointly develop shale gas resources in the Fushun-Yongchuan block in southwestern China's Sichuan province in 200 9, marking China's first joint development project in shale gas.
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