China to Boost Energy Reserve Capacity, Support Unconventional Gas Exploration

By Muyu Xu and Tom Daly
Friday, May 22, 2020

China said on Friday it will bolster the capacity of the country's energy reserves and offer lower gas and electricity charges to key industries, as it looks to ensure energy supply and offset the impact of the coronavirus pandemic.

In energy announcements on the first day of the parliament, known as the National People's Congress (NPC), authorities also pledged to boost the country's oil and gas network and continue to support exploration for unconventional gas reserves.

The National Development and Reform Commission (NDRC) said in a statement it would push forward construction of crude oil reserves.

The coronavirus pandemic has led to a slump in demand for crude oil, with insufficient storage capacity worldwide.

The NDRC said it would also press ahead with competitive trading of mining rights for oil- and gas-bearing zones, aiming to attract more market players into oil and gas exploration and production.

The country will also accelerate construction of oil and gas network and encourage the opening up of pipeline facilities to all eligible users, said the state planner.

China set up its long-awaited national oil and gas pipeline company in December aiming at providing fair market access to infrastructure and boost investment in oil and gas production.

The Ministry of Finance said in its 2020 annual budget report that it will continue to support exploration and utilization of unconventional natural gas, including shale gas and coalbed methane, as China looks to lower its reliance on imports.

The ministry will also lower gas charges to agriculture-related sectors seriously affected by coronavirus, such as chemical fertiliser businesses that use natural gas as feedstock.

It also plans to extend a 5% reduction in electricity prices for industrial and commercial businesses till the end of the year. It previously reduced electricity prices from Feb. 1 to June 30.

 (Reporting by Beijing newsroom; Writing by Chen Aizhu; Editing by Richard Pullin)

Categories: Legal Energy Shale Oil & Gas Drilling Activity Production Asia China Shale

Related Stories

CNOOC Finds Oil and Gas in South China Sea

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

CNOOC Starts Production at Offshore Field in South China Sea

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

Velesto’s Jack-Up Rig Set for Drilling Job off Indonesia

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

Petrovietnam, Petronas Extend PSC for Offshore Block

Borr Drilling Bags Three New Assignments for its Jack-Up Drilling Rigs

Current News

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

Sapura Energy Rebrands to Vantris Energy

BP, ONGC, Reliance Industries Ink Deal for Offshore Exploration in India

Allseas-Boskalis Consortium Bags $1.4B Offshore Gas Pipeline Job in Taiwan

CNOOC Brings New Offshore Gas Field On Stream

Yinson, PTSC Get $600M Contract for Vietnam-Bound FSO

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com