Sinopec and Henan Coal win shale contracts
The Ministry of Land and Resources have initially offered four exploration permits to six Chinese companies to tap China’s potential shale gas resources.
The other two areas offered for auction were annulled as less than three companies submitted tenders. Companies which have won the rights, are required to invest a minimum 20,000 yuan (US$ 3077) for each square km each year. Sinopec intends to invest 591.9 million yuan (US$ 91 million) in the Nanchuan block and Henan has signalled it intends to invest up to 247.6 million yuan (US$ 38.3 million) in the Xiushan block.
Foreign companies have been excluded form the auction but will be allowed to form ventures with local companies, China is a newcomer to booming shale gas industry and may need foreign help to get the domestic industry started.
The US Energy Information Administration has calculated that China may have 1.275 trillion ft3 of shale gas, which is 48% more than the US is estimated to possess. The Chinese government is keen to exploit this potential resource as it is pushing to triple its gas use by 2020.
Read the article online at: https://www.worldpipelines.com/business-news/07072011/sinopec_and_henan_coal_win_shale_contracts/
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