Wedoany.com Report-Mar 13, China is extending a subsidy program to support unconventional natural gas drilling as it continues to push for new domestic supplies to ensure energy security.
China is extending a subsidy program to support unconventional natural gas drilling as it continues to push for new domestic supplies to ensure energy security.
A fund to support shale gas and coal bed methane drilling that was originally established in 2020 will be extended through 2025 to 2029, the Ministry of Finance said in a document posted to its website Thursday. The ministry had already budgeted 3.2 billion yuan ($440 million) for the fund in 2025.
Shale gas output rose to a record 25 billion cubic meters last year, about 10 percent of total domestic production, the National Energy Administration said in January. Coal bed methane output in Shanxi province, which accounts for 80 percent of the country’s total, also rose to a record last year. About 30 percent of the fund’s budget for 2025 is alloted to Shanxi.
Beijing has been pushing its oil majors to maintain crude production levels and boost natural gas output to try to rein in its dependence on foreign supplies. China is the world’s largest importer of oil and gas.
