Shell Expects Advances in China Shale Gas Output in Two Years

Royal Dutch Shell said it may be less than two years away from a major advance in shale gas production in China.

"Mid-decade we will be able to decide" on the so-called final investment decision that will determine whether to go into full commercial production, said Maarten Wetselaar, head of Shell's integrated gas operations world-wide, excluding North America, Dow Jones reported.

China aims to produce 6.5 billion cubic meters of shale gas annually by 2015. Currently the country does not produce any shale gas.

The U.S. Energy Information Administration has a preliminary estimate of some 36 trillion cubic meters of recoverable shale-gas resources in China, more than the U.S. and Canada combined, Down Jones said in the news report.