FX.co ★ China shocked Gazprom with its investments

The researches have yielded positive results. Now it becomes clear, why China reluctantly took part in the collaborative gas projects with Russia “Power of Siberia” and “Altai”, while the agreements were signed at terms highly disadvantageous to the Russian Federation.

According to the official report of the State Geological Survey and the Ministry of Land and Resources of China, more than 500 billion confirmed reserves of shale gas were discovered at the end of 2014. Of those, 106 billion are located in the deposits owned by the Chinese oil and gas company Sinopec.

China has gas-bearing beds, which occupy 170 thousand square kilometers and localize in 54 major fields.

At the end of the previous year the shale gas production achieved 1.5 bln cubic meters. Investment is expected to continue. Plans for the present year is to invest another RMB 680 million, that is about $109 million at the current rate.

Already by 2020, the PRC expects to reach an output figure of up to 30 billion cubic meters of shale gas per year.

In the report to the President of the Russian Federation V. Putin the head of PAO Gazprom Alexei Miller informed that the level of hydrocarbon production far exceeds sales, so there are increasing numbers of difficulties in production distribution. And now the collaborative Russian-Chinese projects “Altai”and “Power of Siberia” also become irrelevant due to the development of China's own blue fuel production.