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CNPC Relies on Shell, Exxon Mobil to Develop Chinese Shale Gas

December 08, 2011, 10:58 AM EST

By Wael Mahdi

Dec. 8 (Bloomberg) — China National Petroleum Corp. will rely on help from Royal Dutch Shell Plc and Exxon Mobil Corp. amongst others to develop its shale gas resources.

CNPC is working with Shell on a project in central China to develop shale gas, its president Zhou Jiping told reporters today in Doha, Qatar. The company has already made shale gas discoveries and it needs more time to develop them, he said.

“The tectonic movement in China is even stronger than in the U.S., and it’s making the structure more complex,” he said. China has more potential gas resources than the U.S., according to his estimates.

Chinese gas shale development will be more complex than in the U.S. because of a different geological formation, he said.

–Editors: Stephen Cunningham, Alex Devine.

To contact the reporter on this story: Wael Mahdi in Cairo at [email protected]

To contact the editor responsible for this story: Stephen Cunningham at [email protected]

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