• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 50 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 1 day EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 1 hour So You Think We’re Reducing Fossil Fuel? — Think Again
  • 14 mins How is E&P of Marginal Oil on the UKCS Similar to the Shale Oil Operations in the US?
  • 5 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 48 mins Renewables provided only about 4% of total global energy needs in 2018
  • 5 hours N.Y. Governor Signs Climate Bill
  • 9 mins Iran Says It Arrested 17 CIA Spies, Some Sentenced To Death
  • 15 hours Shale Oil will it self destruct?
  • 4 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 2 days Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 2 days Iran Captures British Tanker sailing through Straits of Hormuz
  • 3 hours Today in Energy
  • 6 mins Which is a better domain name for OAPEC?
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

Premium Content

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




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play