• 12 hours Oil Pares Gains After API Reports Surprise Crude Inventory Build
  • 12 hours Elon Musk Won’t Get Paid Unless Tesla Does “Extraordinarily Well”
  • 13 hours U.S. Regulators Keep Keystone Capacity Capped At 80 Percent
  • 13 hours Trump Signs Off On 30 Percent Tariff On Imported Solar Equipment
  • 15 hours Russian Funds May Invest In Aramco’s IPO To Boost Oil Ties
  • 16 hours IMF Raises Saudi Arabia Growth Outlook On Higher Oil Prices
  • 18 hours China Is World’s Number-2 In LNG Imports
  • 1 day EIA Weekly Inventory Data Due Wednesday, Despite Govt. Shutdown
  • 1 day Oklahoma Rig Explodes, Leaving Five Missing
  • 1 day Lloyd’s Sees No Room For Coal In New Investment Strategy
  • 2 days Gunmen Kidnap Nigerian Oil Workers In Oil-Rich Delta Area
  • 2 days Libya’s NOC Restarts Oil Fields
  • 2 days US Orion To Develop Gas Field In Iraq
  • 4 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 4 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 4 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 4 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 5 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 5 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 5 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 5 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 5 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 5 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 5 days Venezuelan Output Drops To 28-Year Low In 2017
  • 6 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 6 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 6 days Kinder Morgan Delays Trans Mountain Launch Again
  • 6 days Shell Inks Another Solar Deal
  • 6 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 6 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 7 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 7 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 7 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 7 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 7 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 7 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 7 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 7 days Norway Grants Record 75 New Offshore Exploration Leases
  • 7 days China’s Growing Appetite For Renewables
  • 8 days Chevron To Resume Drilling In Kurdistan
Alt Text

Oil-Rich Venezuela Is Out Of Gasoline

Iván Freites, a secretary of…

Alt Text

New Importers Keep LNG Markets Tight

While increased LNG demand from…

Alt Text

Gas Wars: The First Energy Conflict In 2018

Territorial disputes over newly discovered…

Darrell Delamaide

Darrell Delamaide

Darrell Delamaide is a writer, editor and journalist with more than 30 years' experience. He is the author of three books and has written for…

More Info

Shell's China Connection Grows Stronger with Another New Gas Venture

Shell's China Connection Grows Stronger with Another New Gas Venture

Royal Dutch Shell further intensified its relationship with China in a new 30-year accord to appraise and develop tight gas reserves in the Sichuan basin.

The new project in the 4,000-square-kilometer Jinqiu block is Shell’s third venture in unconventional gas development with the China National Petroleum Corp. in the past six months.

The new deal marks once again China’s resolve to secure both domestic and foreign energy resources to supply its rapidly growing economy. Chinese oil and gas companies have announced deals in Argentina, Uganda and Iraq in recent weeks.

Earlier this week, Shell and CNPC, through its PetroChina unit, announced an accord with Arrow Energy, a leading producer of coal-seam gas in Australia, to acquire the company for A$3.5 billion (US$3.15). The acquiring companies sweetened their original bid of A$3.3 billion from earlier this month to win Arrow’s agreement.

Reports this week suggested that CNPC may try to export some of Arrow’s coal-seam gas, which cannot be liquefied, via pipeline to China.

In November, Shell and CNPC agreed to jointly develop a shale gas project further south in the Sichuan Province, in the Fushu block, also 4,000 square kilometers.

Tight gas, or basin-centered gas, is gas trapped in rock. As with shale gas, the rock must be fractured to allow the gas to escape into the well.

The Jinqiu venture is Shell’s second tight gas project with CNPC. The Changbei block in the Ordos basin of Shaanxi Province began production in March 2007 and now supplies 3 billion cubic meters of gas a year to Beijing and other cities in eastern China.

The success of unconventional gas ventures in the U.S., such as the Barnett Shale in Texas, has spurred interest in these resources around the world. Shell already has onshore tight gas production operations in the U.S. and Canada, as well as the Changbei venture.

Reuters reported that Shell will provide all the capital for the Jinqiu development, and as a result will own more than half the gas produced. The Jinqiu project is expected to yield 2 billion to 3 billion cubic meters a year when it starts production in two to three years, the news agency said.

By. Darrell Delamaide




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News