China Slashes Shale Tax
China has reduced the resources tax that is levied on shale gas output in order to boost domestic production, the country’s finance ministry said April 3.
According to the ministry the tax has be reduced by 30% from 6% to 4.2% and the new rate will be valid for three years from April 1 2018 to March 31 2021.
China has been looking to raise the share of natural gas in its overall energy mix in order to fight urban pollution. The government has been focusing on exploiting its vast shale gas resources. Despite numerous challenges, Chinese state owned firms have achieved success in the shale gas industry.
Last month, Sinopec said China's first shale gas field Fuling has built up an annual capacity of 10bn m³ but last year the Sinopec-operated field in Chongqing produced only about 6bn m3.