Beijing: China will offer subsidies from the central budget to support the exploration of shale gas.
Every cubic metre of developed shale gas during the period of 2012-2015 could receive RMB0.4 subsidy, according to a statement released by the Ministry of Finance, meanwhile, the local governments could also offer separate incentives based on regional demands.
An official from the Ministry of Land and Resources said that shale gas annual output in China is expected to reach 100bn cubic meters by 2020.
China has the largest amount of untapped shale gas in the world. What it lacks is the fracking technology to get to this fuel. How successful China is at developing its shale gas reserves will have a huge impact on LNG import requirements in the next decade. [06/11/12]