Tie-ups with PetroChina may have Shell in pole position to reap the benefits of China’s potential shale bonanza.
Bloomberg reported that China and Russia are nearing agreement on a gas supply deal.
Following a $2.2 billion deal that will see Sinopec acquire Daylight Energy, analysts believe Chinese firms may be poised for a shopping spree in Canada’s natural gas sector.
Both China and Russia remain confident that an agreement over pricing will eventually be reached.
Shale gas has already been dubbed a ‘game changer’ for US energy markets - these three hotspots may prove to be just as fruitful.
Bloomberg reported that imports of natural gas to China were twice as high as the same period a year ago.
Total began searching for a new joint venture partner to take a share of a shale gas exploration permit in France. The zone covered by the French permit obtained in March 2010, could contain up to 2,380 billion cubic meters of gas, this amount estimated by multiplying the average gas level in the area by the surface area.
Last month news reports out of China surfaced that the nation might see its natural gas supply fail to meet 35 percent of the demand in 2011, and the shortage could persist through 2021.
China has an enormous gas market to be filled, both in the short term and long term, where natural gas will account for as much as 12 percent of the primary energy needs over the next decade from the current 3.8 percent. Shell's Chief Financial Officer Simon Henry indicated that the company may invest $1 billion each year in China if PetroChina's two wells in Sichuan province prove they have the potential for commercial gas production.
A 50 billion Australian dollar $41 billion deal for China to purchase Australian natural gas shows current diplomatic tensions between the two countries will not trump their commercial interests. For full story, click here
Monday, February 6, 2012