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Policy & Regulation

China tweaks subsidies to up ante on unconventionals

The government’s new scheme will reward producers that boost output and penalise those that underperform as China seeks to curtail its dependence on imports The government’s new scheme will reward producers that boost output and penalise those that underperform as China seeks to curtail its dependence on imports.
By Colin Shek 8 July 2019 Asia Pacific / Policy & Regulation 0 34373
CBM drilling in Shanxi. (Sino Oil & Gas)

China’s revised subsidy scheme for unconventional gas production – which for the first time includes tight gas in addition to shale gas and CBM – demonstrates how policymakers are coming up with more creative and precise approaches to coax greater domestic output from upstream players.

The Chinese finance ministry announced a new subsidy regime towards the end of last month that will see all unconventional gas producers compete for cash from a predetermined pool. Subsidies will be assigned based on...