Want China Times: China's lofty 2015 shale gas goals dependent on two state giants

China is set to pit itself against the rapid development of the US shale gas industry. The set target — 6.5 billion cubic meters — will most likely be carried on the backs of petrochemical giants CNPC and Sinopec Group, according to a report from NetEase's finance portal.

CNPC and Sinopec together control about 80% of shale gas resources, while other domestic state-owned enterprises (SOEs) and private enterprises have yet to turn out even one cubic meter of gas. In their defense, the shale gas areas obtained by these other enterprises are riddled with poor reserves and are difficult to explore.

The third round of bidding has yet to be announced. The ministry has yet to set the time and it may fall in 2014, said one unnamed official at the Ministry of Land and Resources.

China has conducted two rounds of bids for shale gas exploration. In July 2011, two state firms won the right to explore shale gas in two blocks. In 2012, 16 companies, including two private firms, won the right to explore 19 blocks for shale gas. MORE

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