After benchmarking the USA who should become a net gas exporter in 2012 for the first time in their history, China has learnt the lesson very fast and decided to develop their reserves of shale gas on fast track to reduce their energy dependency.
The fact is that China hosts 19% of the global reserves of shale gas, 25 000 billion cum, far ahead the USA with 13 600 billion cum. But the speed at which the USA have become gas self sufficient, about 5 years, has impressed the Chinese Authorities. In addition the chemical industry is relocating production in USA to benefit from these cheap and sustainable resources creating thousands jobs.
For instance, only 50 shale gas wells have been drilled in China but no commercial production has been announced.
So the powerful National Development and Reform Commission (NDRC) of the Republic of China, which manages all the national economical and development plans, has announced the official goal to reach 6.5 billion cum of shale gas production in 2015 and 60 to 100 billion cum in 2020.
Considering that many reserves are located in well populated areas, the Chinese companies have realized that technology will be the key of this development. To learn fast they multiply the alliances with the most experienced companies in the World.
CNOOC invested $2 billion in Cheasepake.
Sinopec made a major step forward in January 2012 in spending $2.2 billion to take 33% of 5 shale gas fields owned by Devon Energy in USA. Then this week, Sinopec signed an agreement with Total to explore the shale gas fields in China.
CNPC, the China National Petrochina Company, had signed a first agreement in 2010 with the Oil giant Royal Dutch Shell to evaluate the reserves of the the Fushun-Yongchuan block in the Sichuan Basin,China. Then this week, CNPC announced to have signed a production-sharing contract with Shell to explore, develop and produce shale gas in this area which covers about 1,351 square miles.
From USA to China, the cash race continues in shale gas.
