Royal Dutch Shell is aiming to spend $1 billion a year over the next five years on shale gas in China if its explorations works under way prove a success, Chief Executive Peter Voser told Reuters on Sunday, Shell is drilling 17 wells in China, including for tight gas and shale gas, in regions such as south-western Sichuan, China's most prolific gas province.
Inspired by the massive success of unconventional gas - coalseam methane, tight gas and shale gas - in the United States, China has over the past year embarked on an exploration campaign for shale gas, part of Beijing's goal to boost use of cleaner-burning fuel and cut dirtier coal.
"Its too early say that shale gas is game changer (in China) but I have great expectations. We are drilling 17 wells this year. That will give us a sense of magnitude of what's available here," Voser said on the sidelines of a forum.
China does not have any shale gas production yet, but has a rough target to pump some 10 percent of its total gas output from shale gas by 2020.
Voser declined to specify how many of the 17 wells are for shale gas, gas that is trapped in rocks and requires special technology called hydraulic fracturing to extract.
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