Royal Dutch Shell plc (NYSE: RDS-A) has found shale gas in two vertical wells in China that were drilled in conjunction with Shell’s partner, Petrochina Co. Ltd. (NYSE: PTR), a unit of China National Petroleum Corp. This is the first discovery of shale gas in China and could throw a monkey wrench into gas producers’ plans to develop an export market for gas in the world’s largest country.
The discovery was revealed by a Petrochina spokesman on the sidelines of the World Petroleum Congress currently being held in Qatar. Shell has not yet confirmed the find.
News of the discovery could have a chilling effect on plans by some US producers to export natural gas as LNG to China. The explosion of shale gas drilling in the US had lifted hopes for exports of LNG to raise prices for natural gas, which have been pushed down to around $3.50/thousand cubic feet in the US due to the vast amounts of gas now available through hydraulic fracturing and horizontal drilling. Cheniere Energy Inc. (AMEX: LNG) recently received approval to construct an LNG export plant at its Sabine Pass facility, and has signed a contract to export LNG to Spain beginning in 2017.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
