Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

China’s Five-year Shale Gas Development Plan Seems Optimistic

VIEWS: 16 PAGES: 8

China released a five-year shale gas development plan for the 2011-2015 period in March 2012 with a target of reaching 6.5 billion cubic meters (bcm) of shale gas production per year by 2015. Additionally, the plan aimed for the completion of a two-year survey and appraisal of shale gas reserves within the plan period, increase China’s expertise on technologies and equipment required for the exploration and production of shale gas, and the development of a policy framework for the regulation of the country’s shale gas sector. However, the planned target of 6.5bcm of shale gas production per year by 2015 seems unfeasible, considering the complex geology of the shale gas reserves in China. The complex geology of shale reserves implies higher cost of development of shale gas, turning companies to focus more on other unconventional or conventional sources of natural gas. Additionally, several factors such as water shortages, insufficient natural gas pipeline infrastructure, government control over natural gas prices and environmental issues will be primary obstacles to achieving the objectives of the five-year shale gas development plan.

More Info
									                   China’s Five-year Shale Gas Development Plan Seems
                                        Optimistic
       Reference Code: GDGE0685VPT                                                                                                                           Publication Date: April 2012


       1         Table of Contents
       1 Table of Contents.................................................................1               1.1       List of Tables
        1.1 List of Tables .................................................................1
        1.2 List of Figures ................................................................1              Table 1:       Shale Gas Activity in the Sichuan Basin, China,
       2 Summary .............................................................................2                           2009-2012 ................................................................ 5
       3 China’s Five-year Shale Gas Development Plan Seems
         Optimistic .............................................................................2
        3.1 China has Outlined a Five-step Approach to Reach the                                           1.2       List of Figures
             Milestones Set in the Five-year Shale Gas Development                                         Figure 1: China’s Five-step Approach to Reach the Set
             Plan 2                                                                                                  Milestones in the Five-year Shale Gas Development
          3.1.1    China has Exploitable Shale Gas Reserves of                                                       Plan .......................................................................... 3
                   25.1 Trillion Cubic Meters.....................................4                        Figure 2: Shale Gas in China, Major Shale Gas Reserves and
        3.2 China’s Targeted Production of 6.5 Billion Cubic Meters                                                  Natural Gas Pipelines, 2012..................................... 4
             of Shale Gas by 2015 Seems Optimistic .......................4                                Figure 3: Depletion of Ground Water Levels in China, 2011 ... 6
          3.2.1    Complex Geology of Shale Gas Reserves in
                   China will Affect the Five-year Shale Gas
                   Development Plan ................................................5
          3.2.2    Shale Gas Development is Mostly Confined to
                   Sichuan Basin in China ........................................5
          3.2.3    The Five-year Shale Gas Development Plan is
                   facing Several Challenges such as Water
                   Shortages and Inadequate Natural Gas Pipeline
                   Infrastructure ........................................................6
       4 Appendix ..............................................................................7
        4.1 Sources .........................................................................7
        4.2 Methodology ..................................................................7
          4.2.1    Coverage..............................................................7
          4.2.2    Secondary Research ............................................7
          4.2.3    Primary Research ................................................7
          4.2.4    Expert Panel Validation ........................................8
        4.3 Contact Us.....................................................................8
        4.4 Disclaimer......................................................................8




                                                                                                                                          GDGE0685VPT / Published APR 2012 /Page 1
                                                                                                                                                                     Market Analysis Alert
China’s Five-year Shale Gas Development Plan Seems Optimistic
                                                                                                     © GlobalData. This report is a licensed product and is not to be copied, reproduced,
                                                                                                                                                             shared or resold in any form
       2       Summary                                                     Among other things, the plan envisions four milestones to be
                                                                           achieved during the 2011-2015 period. Out of the four, the most
       China released a five-year shale gas development plan for the       important milestone is the targeted production of 6.5 billion
       2011-2015 period in March 2012 with a target of reaching 6.5        cubic meters (bcm) of shale gas per year by 2015. The plan
       billion cubic meters (bcm) of shale gas production per year by      aims to complete the survey and appraisal of shale gas, the
       2015. Additionally, the plan aimed for the completion of a two-     development of required technologies, equipment and methods
       year survey and appraisal of China’s shale gas reserves within      for survey, appraisal, exploration and production of shale gas
       the plan period, an increase in China’s expertise on                before the end of 2015. Additionally, rules, policies and
       technologies and equipment required for the exploration and         technical standards for the regulation of shale gas development
       production of shale gas, and the development of a policy            in China will be formulated during the plan period. The scope of
       framework for the regulation of the country’s shale gas sector.     regulation includes appraisal and certification, tests and
       However, the planned target of 6.5bcm of shale gas production       analysis, reserve surveys, environmental measurements, and
       per year by 2015 seems unfeasible, considering the complex          exploration and production.
       geology of the shale gas reserves in China. The complex
       geology of the shale reserves implies a higher cost of              3.1     China has Outlined a Five-step Approach
       development of the shale gas, discouraging companies and
                                                                                   to Reach the Milestones Set in the Five-
       turning their focus more toward other unconventional or
                                                                                   year Shale Gas Development Plan
       conventional sources of natural gas. Additionally, several
   
								
To top