Top Biz News
CNPC, Shell join forces on Sichuan natural gas project
By Wan Zhihong (皇冠体育app Daily)
Updated: 2010-03-24 09:53
 |
Large Medium Small |
|
 |
|
A Royal Dutch Shell Plc employee walks across the Ormen Lange project in Norway. The company said on Tuesday that it plans to jointly develop and produce natural gas in Sichuan province with 皇冠体育app National Petroleum Corp under a 30-year contract. [Provided to 皇冠体育app Daily] |
Thirty-year contract still needs to be approved by Chinese government
BEIJING?- 皇冠体育app National Petroleum Corp (CNPC) and Royal Dutch Shell Plc plan to jointly develop and produce natural gas in 皇冠体育app's Sichuan Basin under a 30-year contract, Shell said in a statement on Tuesday.
The companies have submitted a production-sharing contract to the Chinese government for approval. Under the 30-year contract, CNPC and Shell will appraise and develop tight gas reservoirs in an approximately 4,000 square kilometer area in the Jinqiu block of central Sichuan province, said the statement.
It did not give any further details such as total investment or output for the Jinqiu project.
"This is another step forward for Shell's worldwide tight gas strategy, building on our technology and production track record in 皇冠体育app and elsewhere," said Malcolm Brinded, Shell's executive director of upstream international. "The agreement will strengthen our partnership with CNPC in developing cleaner energy to meet 皇冠体育app's growing needs."
Shell already has onshore tight gas production in 皇冠体育app, the United States and Canada. Shell and Petro皇冠体育app, the listed arm of CNPC, already operate Changbei, another tight gas field in the Ordos Basin near Yulin in Shaanxi province.
Commercial production in Changbei began in March 2007, supplying 3 billion cubic meters of natural gas a year to Beijing and other cities in eastern 皇冠体育app.
Shell also signed a joint assessment agreement with Petro皇冠体育app in November 2009 for shale gas cooperation in Sichuan. Assessment work commenced in January 2010 in the Fushun block that covers another area of approximately 4,000 square kilometers.
Shell is one among many multinational energy companies that have accelerated their pace in non-conventional gas in 皇冠体育app. British oil major BP is reportedly in talks with 皇冠体育app's second largest oil company Sinopec to develop shale gas in 皇冠体育app.
David Goldwyn, US State Department Coordinator for International Energy Affairs, told 皇冠体育app Daily last week that 皇冠体育app and the US plan to extend cooperation on the development of shale gas and coal-bed methane. The issue will be included in this year's 皇冠体育app-US Strategic and Economic Dialogue.
"As foreign companies have more advanced technology in the area, it is beneficial for domestic companies to engage in cooperation with them," said Han Xiaoping, chief information officer of domestic energy portal 皇冠体育app5e.com.
Under a five-year blueprint, 皇冠体育app plans to increase its annual coal-bed methane output to 10 billion cubic meters in 2010.
