Bocom Energy Weekly:Sector news around the block

Talks of Russian gas import into China under way. Talks are under way betweenPutin and Xi Jinping, on behalf of Russia’s state-controlled Gazprom and China’sstate-controlled CNPC on potential gas imports into China. Initial volume isexpected to be 38bn cubic meters of gas a year, equivalent to 23% of currentconsumption in China and 16% of Gazprom’s current export. The volume has thepotential to ise to 61bcm.

    PetroChina changed overseas operation chief. PetroChina’s vice president andchief of overseas operation Bo Qiliang has left his position, the company announcedthrough Shanghai Exchange, and is facing corruption investigation. This follows thebiggest corruption investigation in China launched half a year ago.

    Chongqing government applied for Rmb57.1m shale gas subsidies for 2013.Chongqing NDRC has applied for Rmb57.1m in shale gas subsidies according to theRmb0.40/cu.m shale gas subsidy policy introduced by NDRC in November 2012.Out of the 15 shale gas wells in Chongqing, Sinopec has the majority i.e. 14 wells with134.74mn cm gas production in 2013. PetroChina, cooperating with Shell China,has 1 well in operation with 8mn cm gas production in 2013.