Shale gas exploration right bidding time in China

Beijing (CNS) -- China will soon launch this year's bidding process for shale gas exploration rights, open to all qualified domestic funded companies with registered capital exceeding 300 million yuan, according to Thursday's announcement by the Ministry of Land and Resources (MLR).

Other qualifications include authorizations to explore oil, natural gas or other gas mines, or cooperative ties with enterprises or public institutions with the aforesaid authorizations. All bidders must be independent legal entities.

MLR just completed the first assessment of China's shale gas resources in 2011: about 25 trillion cubic meters are exploitable from a total reserve of 134 trillion cubic meters. The whole reserve is expected to sustain industrial development for a century, based on current energy consumption habits.

China initiated public shale gas exploration right bidding in 2011, with six state companies competing for four sites.

According to the official five-year shale gas exploration plan, China's store should yield 6.5 billion cubic meters of shale gas in 2015. From 2011 to 2015, China's target is to verify the condition of 600 billion cubic meters, one third of which should be exploitable.