PetroChina Hikes 2014 Shale Gas Spending To $1.6 Bln

World Energy News
Friday, April 18, 2014
(Source: PetroChina)
Chinese state energy giant PetroChina plans to spend more than 10 billion yuan ($1.6 billion) on shale gas this year, more than triple its expenditures on the unconventional fuel over the past few years, two sources with knowledge of the matter said.
 
PetroChina's decision to dramatically hike its shale gas spending comes just months after local rival Sinopec Corp lifted hopes that China is near a breakthrough by announcing a commercial find.
 
PetroChina, Asia's largest oil and gas producer, has also lifted its 2015 shale gas output target to 2.6 billion cubic metres (bcm), up from the previous 1.5 bcm, according to a company official and a government source.
 
That would represent only about 2 percent of China's total natural gas output of around 113 bcm last year.
 
"PetroChina wants to play catch up after Sinopec's success," said a government source who has been briefed on PetroChina's plans.
 
Since around 2010, PetroChina has spent about 3 billion yuan ($482.39 million) total on pilot shale drilling, according to both sources.
 
Faced with high drilling costs and the complexity of tapping shale gas, China has struggled in its bid to revolutionise its energy supplies. The top energy consumer wants to unlock what could be the world's largest shale gas reserves by emulating the hectic exploration and production of the U.S. shale boom.
 
The government official said PetroChina will focus on two pilot zones - Weiyuan-Changning in southwest Sichuan basin and Zhaotong in Yunnan province.
 
Sinopec's shale work has been concentrated in the Fuling area of Chongqing municipality in southwest China, also part of the Sichuan basin, one of the most promising geological zones for the unconventional fuel. Sinopec has drilled nearly 30 pilot shale gas wells in the Fuling area.
 
PetroChina has so far largely focused on growing its conventional oil and gas portfolio.
 
($1 = 6.2190 Chinese Yuan)
 
(Reporting by Chen Aizhu; Editing by Tom Hogue)
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

CMA CGM Proceeds with NOL Takeover after China Okay

CMA CGM, the world's third-largest container shipping firm, is to go ahead with its planned acquisition of Singapore's Neptune Orient Lines (NOL) after receiving regulatory clearance from China,

Singapore Exchange in Talks to buy Baltic Exchange

Baltic Exchange privately owned by 380 shareholders. The Singapore Exchange (SGX) is in exclusive talks to buy London's Baltic Exchange, which has been at the

Euroseas Faces Headwinds, Reports Loss

Euroseas Ltd. (NASDAQ: ESEA), an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes,

Energy

Technip Bags Statoil's Umbilical Supply Contract

Technip’s wholly-owned subsidiary Technip Umbilicals Ltd.(1) has been awarded a contract by Statoil ASA to supply the umbilical(2) to the Oseberg Vestflanken 2 field offshore Norway.

Wood Group Bags Statoil MSA

Wood Group has been awarded an evergreen master services agreement (MSA) by Statoil to support the life cycles of its offshore  and onshore facilities. Work and

ABB Saves 700,000 tons Fuel for Marine Vessels

ABB’s environmental friendly Azipod propulsion system brings greater fuel efficiency to diverse shipping segments ABB today announced the total fuel savings

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0801 sec (12 req/sec)