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China eyes tech breakthrough before shale gas leap

March 19/2012

(Reuters) -- China wants to identify the right technology to unlock its potentially large shale gas resource in the next few years, aiming for a leap in shale production by 2020, two years after it embarked on a search of the unconventional fuel.

Top energy agency, the National Energy Administration (NEA) officially unveiled on Friday a target to produce 6.5 billion cubic metres (bcm) of shale gas by 2015, or roughly 6 percent of China's current total gas production.

But it intends to dramatically boost output to 60-100 bcm in 2020, a level some experts say is over-ambitious as it faces techonological, environmental and regulatory roadblocks.

"The U.S. technologies may not be fully applicable in China's shale gas formation, they need to be revamped," Zhang Yuqing, NEA's head of Oil and Gas Department, said.


"The main task in the 12th five-year period is to lay a good foundation, especially some key technologies in shale gas exploration and development." China started the shale push in late 2009, inspired by a shale boom in the United States. Its state energy firms have since then entered multi-billion-dollar shale deals in the United States with Chesapeake Energy and Devon Energy Corp.

At home companies have drilled several dozens of wells and brought in firms such as Royal Dutch Shell, Chevron Corp and Hess Corp for joint studies. But China has yet to start commercial shale production, though it is widely believed to hold the world's largest shale resource.

The Ministry of Land and Resources revealed early this month China may hold 25.08 trillion cubic metres (tcm) of potentially recoverable shale gas resources. That compared to a U.S. Energy Informationa Agency's forecast in March 2011 at some 36 tcm.


mrcplast.com
Author:Anna Larionova
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Category:General News
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