China Plans Faster Land Approval, Tax-Free Imports for Shale
2012年3月19日 11:1 智信中国低碳投资 www.chineselowcarbon.com 来源：Bloomberg
China pledged to prioritize land approvals for shale-gas exploration, allow tax-free equipment imports and offer subsidies to companies including PetroChina Co. (857) tapping the largest reserves of the unconventional fuel.
The country aims to produce 6.5 billion cubic meters of shale gas annually by 2015 and ramp up output to between 60 billion and 100 billion by the end of the decade, the National Development and Reform Commission said, citing a plan drafted by the National Energy Administration. The goals match estimates issued by the Ministry of Land and Resources previously.
China has yet to produce shale gas commercially as its explorers struggle to overcome the lack of domestic drilling expertise and geology that is tougher than in the U.S., where output has surged 15-fold in the past decade. A “breakthrough” would be needed by 2015 for the country to achieve its targets, the Energy Administration said today.
“The 2015 goal sounds achievable, but having 10 times as much production by 2020 sounds very aggressive,” said Gordon Kwan, the Hong Kong-based head of regional oil and gas research at Mirae Asset Securities Ltd. “Unless China can figure out its technology quickly, I don’t see that goal could be easily achieved.”
Natural gas accounted for less than 4 percent of China’s energy supplies as of last year, compared with a goal by the NDRC set in 2000 to boost the share of the fuel to 10 percent by 2010, according to Kwan. “They have overestimated and under- delivered before,” he said.
Technology, Subsidies
The government plans to offer fiscal support for the development of shale gas, including a subsidy structure based on a system in place for coal-bed methane production, Li Cheng, a vice director at the Ministry of Finance, said at a media briefing in Beijing today.
China will offer subsidies to encourage domestic companies to tap the resource, Zhang Dawei, deputy head of the Strategic Research Center at the land ministry, said on Oct. 20. The subsidy will be higher than the 0.2 yuan (3 cents) per cubic meter provided for coal-bed methane because gas is harder to extract from shale rock, Zhang said.
“If we can make a breakthrough in key exploration and development technologies by 2015,” then it is “very likely” the 2020 target will be achieved, Zhang Yuqing, head of the Energy Administration’s oil and gas department, said at today’s media briefing.
China will allow tax-free import of some drilling equipment that can’t be manufactured domestically, the NDRC said, citing the Energy Administration’s plan for the five years ending 2015.
Shale Auctions
The Chinese government will hold one or two auctions of shale-gas blocks this year, the land ministry said on March 1. China Petroleum & Chemical Corp. (600028), the nation’s second-largest oil company, and Henan Provincial Coal Seam Gas Development and Utilization Co. won the rights to explore two areas in the country’s first shale-gas auction in June.
Cnooc Ltd. (883), which has started exploring its first shale-gas site in China, plans to increase investments in North American shale projects to acquire technology to develop domestic fields, Chairman Wang Yilin said on March 5.
China National Petroleum Corp., the parent of Hong Kong- listed PetroChina, agreed in June to form a venture with Royal Dutch Shell Plc (RDSA) to improve its drilling efficiency after taking 11 months to complete the nation’s first shale well.
Shale-Gas Reserves
China holds 25.08 trillion cubic meters of exploitable onshore shale-gas reserves, the land ministry said on March 1, citing a nationwide survey. That’s part of an estimated 134.42 trillion cubic meters of total gas reserves in the country, according to the ministry.
Proven exploitable shale-gas reserves may reach 200 billion cubic meters by 2015, the NDRC, the country’s top economic planning agency, said today.
The U.S. has 482 trillion cubic feet (13.65 trillion cubic meters) of technically recoverable gas from shale formations, the Energy Information Administration said in a Jan. 23 estimate. U.S. shale-gas output rose to 15 billion cubic feet in 2010 from 1 billion in 2000, according to industry consultant IHS Energy.
For Related News and Information: Top Gas Stories: {TGAS GO}
The country aims to produce 6.5 billion cubic meters of shale gas annually by 2015 and ramp up output to between 60 billion and 100 billion by the end of the decade, the National Development and Reform Commission said, citing a plan drafted by the National Energy Administration. The goals match estimates issued by the Ministry of Land and Resources previously.
China has yet to produce shale gas commercially as its explorers struggle to overcome the lack of domestic drilling expertise and geology that is tougher than in the U.S., where output has surged 15-fold in the past decade. A “breakthrough” would be needed by 2015 for the country to achieve its targets, the Energy Administration said today.
“The 2015 goal sounds achievable, but having 10 times as much production by 2020 sounds very aggressive,” said Gordon Kwan, the Hong Kong-based head of regional oil and gas research at Mirae Asset Securities Ltd. “Unless China can figure out its technology quickly, I don’t see that goal could be easily achieved.”
Natural gas accounted for less than 4 percent of China’s energy supplies as of last year, compared with a goal by the NDRC set in 2000 to boost the share of the fuel to 10 percent by 2010, according to Kwan. “They have overestimated and under- delivered before,” he said.
Technology, Subsidies
The government plans to offer fiscal support for the development of shale gas, including a subsidy structure based on a system in place for coal-bed methane production, Li Cheng, a vice director at the Ministry of Finance, said at a media briefing in Beijing today.
China will offer subsidies to encourage domestic companies to tap the resource, Zhang Dawei, deputy head of the Strategic Research Center at the land ministry, said on Oct. 20. The subsidy will be higher than the 0.2 yuan (3 cents) per cubic meter provided for coal-bed methane because gas is harder to extract from shale rock, Zhang said.
“If we can make a breakthrough in key exploration and development technologies by 2015,” then it is “very likely” the 2020 target will be achieved, Zhang Yuqing, head of the Energy Administration’s oil and gas department, said at today’s media briefing.
China will allow tax-free import of some drilling equipment that can’t be manufactured domestically, the NDRC said, citing the Energy Administration’s plan for the five years ending 2015.
Shale Auctions
The Chinese government will hold one or two auctions of shale-gas blocks this year, the land ministry said on March 1. China Petroleum & Chemical Corp. (600028), the nation’s second-largest oil company, and Henan Provincial Coal Seam Gas Development and Utilization Co. won the rights to explore two areas in the country’s first shale-gas auction in June.
Cnooc Ltd. (883), which has started exploring its first shale-gas site in China, plans to increase investments in North American shale projects to acquire technology to develop domestic fields, Chairman Wang Yilin said on March 5.
China National Petroleum Corp., the parent of Hong Kong- listed PetroChina, agreed in June to form a venture with Royal Dutch Shell Plc (RDSA) to improve its drilling efficiency after taking 11 months to complete the nation’s first shale well.
Shale-Gas Reserves
China holds 25.08 trillion cubic meters of exploitable onshore shale-gas reserves, the land ministry said on March 1, citing a nationwide survey. That’s part of an estimated 134.42 trillion cubic meters of total gas reserves in the country, according to the ministry.
Proven exploitable shale-gas reserves may reach 200 billion cubic meters by 2015, the NDRC, the country’s top economic planning agency, said today.
The U.S. has 482 trillion cubic feet (13.65 trillion cubic meters) of technically recoverable gas from shale formations, the Energy Information Administration said in a Jan. 23 estimate. U.S. shale-gas output rose to 15 billion cubic feet in 2010 from 1 billion in 2000, according to industry consultant IHS Energy.
For Related News and Information: Top Gas Stories: {TGAS GO}
