SCMP: Tapping into China's unconventional gas stores

China, sitting on the world's largest undeveloped shale gas resource and the third-largest coal bed methane reserves, has outlined a bold five-year plan to replicate the United States' success in exploiting unconventional energy.

But analysts said a number of factors might thwart China's ambitious goal.

For a start, insufficient competition due to the industry's dominance by a few state firms, underinvestment in exploration and complex geology could hamper development. A low gas price, underdeveloped pipeline and storage infrastructure also add to the challenge. And then there's the scarcity of water and inadequate technology.

It all means Beijing needs to do more to improve the economics of such projects if it is to succeed in its plan.  MORE