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Shell signs shale gas deal in China

Shell signs shale gas deal in China
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Royal Dutch Shell is pioneering shale gas development in China.

In the first deal of its kind, the oil major has signed a production sharing contract with China National Petroleum Corporation.

Beijing plans to dramatically boost its shale gas output and said it is looking for foreign firms for product sharing contracts with Chinese companies or to provide engineering services.

“China has huge shale gas potential and we are committed to making a contribution in bringing that potential into reality,” Shell CEO Peter Voser said in the statement.

China has yet to start commercial shale production, though it is widely believed to hold the world’s largest shale resources.