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Shell to invest USD 1bn per year in China

22nd November 2012

Shell vows an annual USD 1bn in China’s upstream business sector

Shell to invest USD 1bn per year in China
Shell plans to invest USD 20bn globally in natural gas projects by 2015

Royal Dutch Shell PLC, Europe's largest oil company, will invest around USD 1bn per annum in the upstream arm of its businesses in China, China Daily reported the company’s CEO as saying on Wednesday. The move is based on the country's surging natural gas consumption.

"There is huge potential to come in terms of the natural gas market in China," Peter Voser, the company's chief executive officer, said on Tuesday in Beijing. Voser said the scale of the company’s investment will largely depend on the success of future unconventional oil and gas exploration projects in the country.

Shell holds two gas blocks in cooperation with China National Petroleum Corporation (CNPC), Jinqiu and Fushun-Yongchuan, both in the gas rich Sichuan province. The oil major in March signed the first production-sharing contract with CNPC to develop shale gas at the Fushun-Yongchuan block.

Shell plans to invest USD 20bn globally in natural gas projects by 2015. The move ties in well with China’s needs, as annual national gas consumption is expected to rise to 230 billion cubic meters by the same date.

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