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China: development potential of unconventional resources is essential to region’s growth

China’s Ministry of Land and Resources announced last week that its production of unconventional gas had leapt five-fold in terms of year-on-year production, from around 60 million cubic metres to more than 200 mcm. This appears to be a positive step forward for China’s government in reaching its 2015 shale-gas production target of 6.5 billion cubic metres, as well as meeting rapidly-rising domestic gas demand. The Chinese government are keen to develop domestic unconventional resources and is prioritising land approvals, offering subsidies to explorers, and allowing tax-free imports of equipment to help boost growth. Major state companies including PetroChina and Sinopec are investing heavily in the development of domestic gas infrastructure.

Other major consumers in the region are investing heavily in resources overseas – in particular Japan, Korea and India – who do not possess the vast volumes of domestic resource that China has. As a result, major investment into North American unconventional gas resources has continued to drive the renaissance there for increased exports, which will take the form of liquefied natural gas (LNG), to be shipped across the Pacific to Asian markets. Other new opportunities are also being heavily invested in by Asian gas consumers, including developments in Australia, Angola, Papua New Guinea and Russia, plus speculative new producers from Canada and Mozambique.

The most important global gas industry event in 2014, Gastech, will welcome together Asia’s leading gas consumers with all of the established and prospective producers of gas and LNG, to discuss the role that unconventional gas developments will have on global market dynamics.

Gastech, which takes place in Seoul, Korea, between 24-27 March this year, will focus on the growing and highly-influential role of Asia’s key gas consumers as they seek new supplies to fulfil demand, drive new partnerships, and seek to develop their own gas infrastructure and supply chains. Key participation from national oil companies and stakeholders representing Korea, Japan, China, India, Malaysia, Indonesia, Thailand and more ensure that Gastech will be the most important place to do business in 2014 for anybody working in the gas and LNG supply chains.

Leading a special “˜unconventional resources’ conference session, Craig McMahon – Head of Asia-Pacific Upstream Research at analysts Wood Mackenzie – will reveal how China could soon realise its massive potential for domestic unconventional gas production. Other key papers being presented in this session include a prospective assessment by the Alberta Government of Canada’s potential as an exporter; an update on the United States’ own export ambitions by leading producer, BG Group; plus further new, original papers from major engineering contractors, project financers and LNG analysts.

The Gastech conference and exhibition takes place at KINTEX 1, Seoul, Korea, between the 24th and 27th March 2014.

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