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"**Abstract**
At present, the Ministry of Land and Resources is actively preparing for the third round of bidding for shale gas exploration rights. Zhang Dawei, director of the Mineral Resources Reserve Evaluation Center under the Ministry, recently attended the opening ceremony of the China Shale Gas Training and Consulting Center, hosted by Huayou Energy. The event marked the start of a new initiative aimed at enhancing industry knowledge and capacity in shale gas development.
In addition, Tang Tingchuan, director of the Development Strategy Division at the Policy Research Office of China National Petroleum Corporation, shared an estimated timeline for the upcoming bid. According to him, the third round of shale gas bidding is expected to take place early next year.
Since 2011, the Ministry has conducted two rounds of shale gas exploration bidding. The second round, held at the end of 2012, generated significant attention within the industry. It attracted participation from major state-owned oil companies, private enterprises, local state-owned firms, and non-oil and gas central enterprises. However, despite the high level of interest, reports indicate that many successful bidders have not yet started their exploration activities, with some even withdrawing from the sector.
Industry experts point out that the high initial costs and long payback periods associated with shale gas extraction are major challenges. Additionally, China's complex geological conditions, including diverse landforms and underground structures, make exploration particularly difficult. Even for large, well-resourced companies, securing exploration rights has proven to be a tough and unprofitable endeavor.
As a result, there is growing concern about whether the third round will attract enough participants, and whether foreign investment will be involved.
Zhang Dawei expressed strong support for allowing foreign capital to participate in future bids, but he also noted that it remains uncertain whether this will happen in the third round.
Moreover, Zhang highlighted that by 2020, domestic natural gas consumption is expected to reach 380 billion cubic meters. Domestic conventional gas production is projected to be around 200 billion cubic meters, leaving a supply gap of 180 billion cubic meters. If shale gas production reaches 100 billion cubic meters by then, it could account for approximately 26% of total natural gas consumption, becoming a key pillar of China’s energy mix."
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