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China to develop shale and natural gas production by 2015

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China is aiming to develop huge reserves of shale gas to ensure there is enough gas to supply the country's increasing demand for energy.

Industry sources in Hong Kong said that natural gas and shale gas reserves will need to be tapped to ensure China maintains its economic growth.

Currently, China National Petroleum Corp and China Petrochemical Corp own the rights to build, manage and operate most of the country's pipelines.

China wants to be producing natural gas on a commercial scale at its 19 current shale-gas blocks by 2015.

The country is estimate to have consumed about 147.68 billion cubic metres of gas in 2011.

Infrastructure construction will have China using about 350 billion cubic metres of natural gas a year by 2020, hence the need for development of reserves.

Natural gas is thought to account for less than 5 per cent of total energy used in China.

China is thought to be establishing key natural gas blocks or production centres to co-ordinate development efforts. Reported by Proactive Investors 21 hours ago.

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