Bye Bye Canadian LNG? Bye Bye Need for Site C? China introduces new incentives for domestic production of tight and shale gas and CBM

Watch the oil and gas company bankruptcies, companies taking their profits and running from clean-up (hanging taxpayers with more corporate welfare), subsidies and regulator/analyst/industry propaganda in Canada escalate!

China introduces new incentives for domestic production of tight and shale gas and coalbed methane by US Energy Information Administration, Sept 19, 2019, Natural Gas Weekly

In June 2019, the Chinese government introduced a new subsidy program that, for the first time, offers incentives for domestic production of natural gas from tight formations. The program also extended subsidies for natural gas production from shale formations and from coalbed methane (CBM). The new subsidy program aims to stimulate further growth in domestic natural gas production and to reduce China’s increasing reliance on imports, which have grown from 15% of the total supply in 2010 to 45% in 2018.

… In the new subsidy program, which covers 2019 through 2023, CBM production qualifies for higher subsidies than natural gas produced from shale and tight formations, reflecting the higher cost of CBM production. For production from tight formations, only the incremental volume based on 2017 production levels will qualify for subsidies. Natural gas produced during the heating season (November–February) receives higher subsidies, giving producers more incentives to help alleviate shortages during peak winter demand.

The Chinese government also removed the requirement for foreign companies to establish partnerships with domestic Chinese companies to operate in the oil and natural gas upstream sector.

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