China will offer a subsidy that's at the top end of expectations for shale gas production to encourage the development of the unconventional fuel.

 

The government will subside 0.40 yuan (6.40 US cents) for each cubic meter of shale gas produced during 2012-2015, according to a notice released yesterday by the Ministry of Finance and the National Energy Administration.

 

Local governments may offer extra subsidies, the notice said.

 

China, believed to hold the world's largest shale gas deposits, now provides 0.2 yuan in subsidy per cubic meter for coal-bed methane, or gas trapped in coal seams, with local governments granting an extra 0.1 yuan.

 

China, which has yet to produce shale gas commercially, aims to produce 6.5 billion cubic meters of shale gas annually by 2015, the National Development and Reform Commission said.

 

A second tender of shale gas blocks held last month attracted 152 bids from 83 companies. Private-sector firms took part for the first time. 
 

Name

Email

Title

Comment

smaller | bigger

Subscribe via email (Registered users only)

I have read and agree to the Terms of Usage.

Write the displayed characters

Add Comment