China Invites Tender for Second Shale Gas Auction Round

China’s Ministry of Land and Resources has set May 25 as deadline to submit applications to participate in country’s second auction of shale gas blocks. The country has allowed private domestic companies to bid in the auctions.

Private domestic companies with a minimum registered capital of 300 million yuan ($47 million) will only be allowed to participate. Foreign companies still remain barred from participating in the auctions.

The ministry didn't say when the second round will be held or which fields will be offered. 

Chinese government held its first shale gas auction in June 2010, with six state-owned companies bidding for exploration rights at four blocks. Sinopec and Henan Provincial Coal Seam Gas Development & Utilization Co. won the rights to explore one block each.

China has an estimated 25.08 trillion cubic meters of potentially recoverable shale gas reserves, according to the Ministry of Land and Resources.