China's MLR Supports Setting Up of Shale Gas Zone in Sichuan

China's Ministry of Land and Resources has supported Sichuan government’s plan to set a dedicated shale gas zone in Sichuan basin, Shanghai based National Business Daily newspaper reported Wednesday quoting an official.

The Ministry has expressed full support for the establishment of shale gas test area in Sichuan, Wang Hailin, director of Sichuan Provincial Commission said adding that the Ministry has however not issues any specific details about the plan.

Hailin added that special zone could help break the monopoly of state owned players by allowing more entities in the shale gas sector, the newspaper reported.

Sichuan has China’s largest shale gas reserves, mainly in control of state owned Sinopec and CNPC. Statistics show that 77 percent of country’s shale gas reserves are located in conventional oil and gas fields.  According to Sichuan Bureau of Energy data the province hold 27.5 trillion cubic meters of shale gas with recoverable resources of 4.42 trillion cubic meters, the newspaper reported.

According to Tang Liming, director of the Sichuan Provincial Development and Reform Commission, approval has been received for preparatory phase of the experimental shale gas zone project and that companies have shown interest in investing in the project, National Business Daily reported.

The idea of setting up the special shale gas zone in Sichuan was put forward last year.