The Age of Gas is not just dawning but is well and truly underway with China revealing reserves sufficient for 200 years. At 25 trillion cubic meters (875 trillion cubic feet) of recoverable reserves these could be almost twice the recoverable reserves in the US.
As shale gas comes into play all over the globe there is going to be a run on large gas turbines for power generation. Gas turbine manufacturers (and the big 4 are GE, Siemens, Alstom and MHI) can expect a sellers market within 2 or 3 years as the economic recovery pressurises generation capacity.
China is planning an investment blitz to unlock its vast reserves of shale gas, convinced it can match the energy revolution under way in the US and meet a significant part of its fast-growing fuel needs.
The resources ministry said on Thursday that preliminary surveys showed the country had explorable shale-gas reserves of 25.1 trillion cubic metres, in theory enough to meet China’s gas needs for the next two centuries.
This is slightly lower than earlier figures but well ahead of the reduced US estimates of 13.6 trillion cubic metres, down from 23 trillion in earlier studies. The fields are mostly in Sichuan or in sparsely populated regions in the interior.
“China is rich in shale gas resources, which are suitable for scaled development,” said Yu Haifeng, the resource ministry’s deputy director. “But the geological conditions are complex and our exploration technology lags behind advanced countries. If the country’s shale gas output exceeds 100bn cubic meters by 2020, the fuel will become an important source of China’s energy supply.” …….
China Petroleum Corporation has already found shale gas at 20 sites and has launched a joint venture with Chevron. Royal Dutch Shell has been developing shale projects in China for the past two years, describing the potential as “very powerful”.