Chinese firms to invest $2bn in gas prospection

Some 16 Chinese firms have pledged to invest CNY 12. 8 billion (USD 2 billion) in shale gas prospection over the next three years, state-run Xinhua News Agency reported Monday. The companies won a second round of auctions for exploration rights for 19 shale gas blocks and include 14 state-owned enterprises and two private firms, according to auction results formally announced by the Ministry of Land and Resources. Authorities will also monitor the impact of shale gas prospection and exploration on the geological environment throughout the entire process, the report said. China, the world's second-biggest energy consumer, held the first round of auctions for exploratory rights for four shale gas blocks in June 2011. The second round of auctions was held last October, with a total of 83 enterprises participating in the auction. A total of 26 exploitable shale gas blocks have been made available for exploration thus far, with shale gas reserves estimated to total 25.08 trillion cubic meters, according to statistics released by the ministry.