China faces hurdles to developing shale gas

Energy-hungry China is tapping its vast shale gas reserves to reduce its reliance on dirty coal and imports, but experts warn its lack of technical expertise and scarce water supplies pose challenges. China, which has substantial reserves of the hard-to-reach gas — trapped in formations of shale, or sedimentary rock — has started drilling to meet an ambitious annual production target of 80 billion cubic metres by 2020. Beijing is investing billions of dollars to develop clean energy as it seeks to meet a target of generating 10 percent of its energy needs from natural gas and 15 percent from renewable sources by 2020. The world’s biggest emitter of greenhouse gases relies on coal for nearly 70 percent of its energy needs and is heavily dependent on imports of oil, gas and coal to meet growing demand as millions leave the countryside for urban areas. But shale gas extraction — developed in the United States and Canada — is more complicated and expensive than tapping conventional gas and experts say it could take several years before commercial production starts in China. Huge amounts of water, sand and chemicals are injected deep underground to break up shale formations and release the gas trapped inside. The process can contaminate aquifers and gobbles up fresh water, which is already in short supply in China, where some areas are regularly plagued by droughts, leaving farmers and livestock without water and parching crops. “The technical conditions appear relatively challenging and… large amounts of water are essential to shale gas development,” said Tom Grieder, an analyst for IHS Global Insight. He noted that the country’s southwest — where drilling is currently under way — is prone to droughts. A leading environmental group has also expressed concern that shale gas development could lead to reduced investment in energy efficiency and even replace renewable resources, which are key to tackling climate change. “It is the cleanest fossil fuel compared to coal and oil, but it is still a fossil fuel,” said Stephan Singer, head of WWF’s Climate and Energy Policy Unit in Brussels. Singer said he understood why China, the world’s second-largest economy and biggest energy consumer, wanted to develop shale gas but he hoped that it was “only for replacing coal and not for replacing renewables”. The US Energy Information Administration estimates China has nearly 50 percent more “technically recoverable” shale gas than the United States, but analysts cautioned that the quality of such reserves was still not known.

More from AFP