China to Formulate Shale Gas Development Plan

China is drawing up a national shale gas development plan and aims for commercial production of the alternative fuel as early as possible as it gears up to boost cleaner energy consumption and reduce reliance on carbon-intensive coal.

The National Energy Administration (NEA) is drafting the plan, studying relevant policies and establishing a pilot shale gas development area, according to a report posted on the National Development and Reform Commission's website (www.ndrc.gov.cn).

The report did not provide further details on the plan.

The government has also set up a special research project for key shale gas exploration and development technologies according to Liu Tienan, head of the NEA, at a recent meeting with Royal Dutch Shell chief executive Peter Voser (to read more about this, please click here).

Shell is drilling 17 wells for tight gas and shale gas in China and plans to spend $1 billion per year over the next five years if the exploration proves successful.

Source: Finanznachrichten