India and China Will Soon Produce Natural Gas from Shale
India and China have been contemplating the development of domestic shale resources for some years now. China is perhaps three to five years ahead of India in the shale development trajectory, as it is in developing coal bed methane and tight sands resources. China has also been far more welcoming of foreign companies, both majors and very large independents, in the "unconventional" natural gas E&P (including Royal Dutch Shell, Total, Conoco-Phillips) business than India but the attitude of the latter is changing, in frank imitation of the former. Both countries have a strong interest in securing US technological and operating skills in developing shale assets. The Sino-US Shale Gas Resources Cooperation Initiative was signed in 2009. In November 2009, CNPC via its publicly traded entity PetroChina Co. entered into an agreement with Shell to evaluate shale gas resources in Sichuan province. A similar Indo-US agreement on shale gas is likely to be executed within several months.
In China the Ministry of Land and Resources, CNPC and Sinopec are undertaking several well-followed shale surveying and exploration projects, both independently and in collaboration with foreign companies that include Conoco-Phillips, BP and Shell. Sinopec hopes to produce 240 mmcfd from shale gas in 2015 with a long term goal of producing almost 3,000 mmcfd from shale. CNPC has more modest near-term goals and expects to produce only about 50 mmcfd from shale gas in 2015.