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Project Insights

Huadian’s exit puts NOCs in shale gas driving seat

State-owned power utility China Huadian’s exit from shale gas licences it won in late 2012 could prompt other companies to reconsider entering China’s shale gas sector and the wider upstream segment State-owned power utility China Huadian’s exit from shale gas licences it won in late 2012 could prompt other companies to reconsider entering China’s shale gas sector and the wider upstream segment.
By Tang Tian 22 August 2019 Asia Pacific / Exploration & Production 0 34508
Development at Fuling shale gas field. (Sinopec)

The key issue: China Huadian has reportedly handed back acreage that it won in China’s second shale gas exploration licensing round held in late 2012.

Interfax analysis: The withdrawal of state-owned power producer China Huadian from China’s shale gas sector – reported by local business magazine Caijing – could leave the Chinese central government facing an uphill struggle to persuade more players to enter China’s increasingly liberalised upstream sector.

China’s second shale gas tender – held in 2012 – awarded exploration...