The National Energy Administration
("NEA") issued the Shale Gas Industry
Policy ("Policy") on October 22, 2013,
which was made public on October 30, 2013. The Policy recommends
certain reforms to encourage shale gas development in China. The
key points are set out below.
- Qualifications for shale gas companies
According to the Policy, shale gas exploration companies should
be financially sound, have well-established accounting procedures,
and be legal entities capable of independently assuming civil
liabilities. Further, they should have properly qualified personnel
for construction, project management, and safety evaluation. The
Policy also states that shale gas exploration companies should be
subject to the Ministry of Land and Resources' technical
specifications relating to shale gas, including the calculation of
reserves, geological surveys, seismic prospecting, and drilling,
etc. However, if no relevant specifications exist, the companies
should be subject
