High costs and lack of finds take toll on independents

More than a dozen Chinese independents have halted exploration and development investment in the country’s shale gas reserves as high costs and a lack of confidence in making commercial finds takes its toll, writes Xu Yihe.

Industry officials said about 65% of the 18 companies that won licences to explore 22 shale blocks in the country’s 2011 and 2012 licensing rounds have surrendered acreage to the Ministry of Natural Resources (MNR).