Shell set for FEED tender in Sichuan

Turning potential into reality: Shell chief executive Peter Voser

AFP PHOTO/BEN STANSALL

By Xu Yihe Singapore

 31 May 2012 22:59 GMT

Anglo-Dutch supermajor Shell is preparing to launch a front-end engineering and design tender for the pilot development of China’s first shale gas field, in the south western province of Sichuan.

The pilot project is intended to pave the way for the Fushun-Yongchuan field’s full commercial development to start in two years.

Well-placed industry officials said Shell, and its production sharing partner , China National Petroleum Corporation (CNPC), ­require that foreign FEED contractors wanting to participate in the tender should partner with a Chinese engineering house.

“This will be part of the learning curve for Chinese companies to develop unconventional gas,” said one source with direct knowledge of the process.

Sources said the tender is ­expected to draw interest from WorleyParsons of Australia, Fluor from…

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