Saturday, November 8, 2014

Chinese Domestic Natural Gas Fracking Boom, Direct From Ground To Pipeline(One by One British Columbia Is Losing LNG Customers)

- China's shale gas ramp-up may surprise the skeptics. Beijing wants drillers to grow output from a standing start to a third of current U.S. levels – around 270 billion cubic meters (bcm) annually – by 2020. That’s a stretch. But on plausible assumptions, the People's Republic could get there within a decade. New discoveries and further joint ventures with the likes of Texas-based FTS International would help.

The development of vast domestic shale resources has taken on fresh urgency as China attempts to shift power generation away from smog-producing coal towards cleaner-burning natural gas. The International Energy agency expects Chinese gas demand to nearly double to 315 bcm a year by the end of this decade. Shale could account for between a fifth and a third of that if drillers hit a government target of 60-100 bcm of production by 2020.

State-backed petroleum giants Sinopec and PetroChina increasingly appear on track to reach an initial goal of 6.5 bcm of shale production by 2015. But from there, they would have to turn up production by an aggressive 65 percent per year to hit the mid-point of Beijing's longer-term target.
That would be almost double the 37 percent annual production growth their American counterparts managed as U.S. fracking took off between 2005 and 2010. And they didn't have to contend with China's mountainous terrain, water shortages and underdeveloped infrastructure.

More plausibly, if China could match the growth rate the United States achieved during the early years of its boom, Beijing's shale gas target would be in reach within a decade. There's plenty of manpower to throw at the problem, and the PRC is also gaining access to needed engineering know-how, for example though the partnership struck with fracking specialist FTS this week.

Better-than-expected output at a recently discovered gas field in Sichuan Province has convinced the usually-conservative IEA that China might get half way to its long-term target by 2020. That already implies production growth rates ahead of the United States. It's another reason to think Chinese shale may bring an American-style surge of gas sooner than the doubters expect. Other things being equal, that would pile further pressure on the fuel sources that were the big losers in the U.S. shale boom


"Moreover, with further capital, these pipelines could expand to 100bcm. They are thought to be able to deliver gas in a range of $10-12mmBtu, below the Australian breakeven costs and roughly comparable with US LNG.
Australian hopes of China being the great expanding gas market of the future were just dealt a severe blow."


And while our Canadian lame duck spineless media blathers about Stephen Harper signing vague deals with China worth a whopping $2.5 billion dollars China and Russia agree on another $400 billion worth of natural gas flowing from Russia to China..


Russia, China Sign Energy Deals at APEC Summit

Uranium Companies headquarters right here in downtown Vancouver are jubilant after seeing their stock values soar after Japan announces definite nuclear restarts!

Uranium mining stocks jump as Japan clears way to reactors restart


Couple what`s happening above with the massive $400 to $800 billion dollar piped natural gas signed deal between Russia and China....Too late Christy Clark, game over Rich Coleman...Please stop selling out British Columbia`s future..

If you can read Rich Coleman, China besides developing their own natural gas reserves are moving forward with a second giant pipeline from Russia... 


Mr Wedvedev said Russia and China may soon plan on building a Western gas pipeline in 2015. If negotiations are successful, the additional natural gas pipeline to China will be able to provide energy using the Western route by 2015. The Russian prime minister revealed that the final details regarding the construction of the second pipeline may be done within 2015.

OAO Rosneft, Russia's state oil giant, said it has also signed a deal with to strengthen relations with the China National Petroleum Corp. The oil company has been hit by Western sanctions over Ukraine. As Western funding came to a halt in recent months, Russia has turned to China to offer stakes in the country's oil fields.


Vaughn Palmer wrote an article about confidentiality agreements between government and these giant energy companies,.....

And how they can tie future government`s hands...That may be true, however if the British Columbia Government of the day(BC Liberals) are lying, have lied, continue to lie about the benefits BCers were to receive, newsflash big energy companies...A false advertised deal does not have to be kept or honoured by any future government...Contracts and regulations can be shredded, ripped up and burned..

The Straight Goods

Cheers Eyes Wide Open


2nd Rus/Chi Holy Grail said...

Russia+ China Near Completion Of Second "Holy Grail" Gas Deal

Six months ago, something few had expected would take place in 2014, or even in the coming years, happened: under Western pressure and out of a desire to diversify away from an increasingly hostile European market, Russia signed the so-called "Holy Grail" gas deal with China, pivoting away from the west and toward with Beijing.

And then today, with little fanfare, Russia's president Putin told the media ahead of his visit to the Asia Pacific Economic Conference on November 9-11, that Moscow and Beijing have agreed on many of the aspects of a second gas pipeline to China, the so-called western route, or as some already are calling it, the "second holy grail."

“We have reached an understanding in principle concerning the opening of the western route,” Putin said. "We have already agreed on many technical and commercial aspects of this project laying a good basis for reaching final arrangements,” the Russian President added.

As RT reports, the opening of the western route, the Altai, would link Western China and Russia and supply an additional 30 bcm of gas, nearly doubling the gas deal reached in May.

Once the Altai route is completed, China will become Russia’s biggest gas customer, able to receive up to 68 bcm of gas annually, surpassing the 40 bcm Russia supplies Germany each year.

Jon Ghun said...

That von poncer is a paid off agent. Notice the way he haughtily floats around the secrecy issues surrounding the BC LNG negotiations, but without ever daring to ask a single hard question about what might actually be going down underneath cone of silence around said file (you know, like a real journalist would).

Make no mistake, this province has been captured by the $indicate, lock, stock, and barrel. They own the main media, the bc liberal party, and the corporations of plunder; and none of these bandits in power is ever going to do what is right for the people and the economy.

We're going to have to throw down before it's over.

Grant G said...

You gentlemen are both correct...

However, shareholders can read too..

For once the dismal financial prospects are too glaring too hide, shareholders will revolt and prevent any Final investment decisions..

China as a lucrative market is done, China as a mediocre market is done too..

Japan`s share of LNG market will continue to wane as more and more nuclear is restarted, coupled with their planned increases in solar, wind and geothermal...

India as a market, yea sure, but only at rock bottom prices and Australia is 2 weeks sailing/transporting days closer than is BC`s west coast..

Coleman is going to Malaysia in December...

I know why PETRONAS wants him there..

Ultimatum time, regarding environmental assessments, PETRONAS wants no part of it, either they get carte blanc permission to build, no questions asked or they walk..

PETRONAS picked the wrong location..

Expect a war between First Nations and the BC Government..

This is indeed going to be entertaining..


Anonymous said...

You are spot-on why Coleman is going to Petronas next month. Thank the Lord we have the First Nations protecting the land from these invading hordes. They are our only conscience.

John's Aghast said...

Grant G: Entertaining? You are one masochistic son-0f-a-gun!
There'll blood in the woods before this is over!
After following you for the last four or five years it was evident that this would be the outcome.
The only way Chrispy will save her tush is to devote half the effort she has applied to LNG for a domestic NG industry. GIVE the stuff to the Ferries, the Rail/trucking industries, heck, even to the people who own it (BC population).
Why waste energy, advertising $s, TFW's flogging a dead horse? Change horses before its too late, and provide some benefits to the Province!

Grant G said...

Mr. Aghast...perhaps "entertaining" was the wrong choice of word..

Watching the BC Liberals wallow in the mud is more like it..

Interesting too...PETRONAS claims their LNG plant will cost $11 billion...LMG Canada(Shell) claims their plant will cost $40 billion..

The plants are about the same size...

Petronas wants free gas...

Shell(LNG Canada) wants their plant paid for twice by BC taxpayers..

When will media ask the right questions, when will media ask any questions?

Funny stuff indeed..

All the resources big media possesses, research departments, editors, money, archives etc etc etc..

And one lone blogger with a single computer, who takes care of his mom, a cat, maintains her home, repairs boats, car, cooks, cleans etc etc put them to shame..

Stormin Norman Farrell does yeoman`s work too..

What a shame...eeer, no, what a media crime syndicate..


Just for the Record said...

On a related matter, let me you all to come inside, inside. it's the show that never ends. Up on the stage now we have Ole' Fazil Mihlar conducting another one of his snake-handling tent revivals for the vipers of Zion over at the BC Ministry of Natural Gas.

Here's the short of what he's "arranged":

Industry exempted from making any contributions to toxic clean-up fund.

Industry pays virtually no taxes.

Industry creates a very limited number of jobs.

Industry walks with billions of dollars of profit (no doubt to be hidden in off-shore havens).

Norm's got the story at his place.

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