Shale gas approved to be a new independent mineral resource
Source: Portal Website of Ministry of Land and Resources Citation: China Mining News Date: Jan. 8, 2012
Shale gas, a sort of unconventional natural gas which is mainly composed of methane, was approved to be the 172nd mineral resource in China recently. The Ministry of Land and Resources will work out investment policy for it as an independent mineral resource and conduct administration on it. The reporter learned from the Ministry of Land and Resources recently that, the State Council approved shale gas to be a new independent mineral resource. So far, the family of China oil and gas resources has had a new member. Shale gas refers to the adsorptive and free unconventional natural gas that occur in rich organic substance borne shale and its inter-bedding. Primarily composed of methane, it is a kind of clean and high efficiency energy and chemical raw material. Shale gas is extensively used in domestic life, urban heat supply, power generation, auto fuel and chemical production. Normally no drainage is required during shale gas production. Its production circle is relatively long, about 30-50 years, but the yield rate is also high. Shale gas has high industrial and economic value. China has a great shale gas potential. It is roughly estimated the recoverable shale gas in China may amount to 31 trillion m3, which is equal to conventional natural gas. It was said that, in light of instructions by the State Council, the Ministry of Land and Resources would, according to the features of shale gas, prospecting and exploitation progress of China and overseas experiences, administer the shale gas as an independent mineral resource and formulate relevant support policies to promote its prospecting and exploitation and realize large-scale development as soon as possible. This would help lessen oil and gas resource shortage in China, improve natural gas supply capacity, change energy structure, increase supply of clean energy and form a new prospecting and exploitation pattern of oil and gas. In order to drive prospecting and exploitation of shale gas, up to now, the Ministry of Land and Resources has finished the first round of bid invitation and transfer of shale gas prospecting right. The Ministry of Land and Resources is keen to introduce various investors, realize transfer of prospecting right via competition, agree on prospecting period and input in contract and urge bid winners to perform contract by means of supervision. Besides, exit mechanism is established. The prospecting right owners shall exit the block partially or totally if they do not perform the prospecting and input obligations regulated in the contract. It is learned that, new prospecting and exploitation technologies and administration methods are required for shale gas, which is a new energy. Shale gas development is highly relied on technological progress. Conventional oil and gas development methods for shale gas are bound to result in high cost. Insiders predicted that, establishment of the independent mineral resource status for shale gas this time will drive investment in shale gas development and accelerate large-scale and industrialized development.
China Mining Congress and Expo 2011 attracted over 5000 delegates, exhibitors and visitors from 55 countries and regions, increasing by over 650 people as compared to the last session. There were 382 domestic and foreign exhibitors, increasing by 38% as compared to the last year. The exhibition area amounted to 25000 square meters, more than doubling that of the previous session, with 1,050 standard booths, increasing by 65% compared to the previous session. There were a total of 23 forums and 7 projects shows held with 425 promotion and negotiation projects introduced by the congress, increasing by 32.8% as compared to last year. At the project signing ceremony, 55 projects were signed, amounting to RMB15.7 billion, increasing by RMB 4 billion and by 34% as compared to the previous year. More than 40 foreign VIPs including 23 mining ministers and vice ministers as well as ambassadors in China from 18 countries and regions such as Australia, Canada, South Africa, Angola, etc. attended this session of the congress. Meanwhile, the congress attracted more than 100 medias and over 200 journalists from home and abroad to cover the congress. In terms of number of delegates and scale of exhibitors and booths, the CM2011 all topped the previous sessions, ranking the world’s premier mining congress and expo..
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