Tom Deegan, Eric Lin & Bree Miechel highlight the legal considerations surrounding the growing investment in shale gas
China is one of a number of countries actively exploring opportunities to exploit its abundant domestic shale gas reserves in an effort to meet its growing energy requirements. As part of this initiative, the Chinese government has issued various policies to encourage the development of the industry. Of recent note is the joint issuance by China’s National Reform and Development Commission (NDRC) and three other government departments of Shale Gas Development—2011 to 2015 on 16 March 2012 (shale gas plan) and the classification of shale gas in China’s new 2011 Catalogue for the Guidance of Foreign Investment as an encouraged area for foreign investment in joint venture with Chinese companies.
As Chinese domestic energy companies have limited experience with shale gas, this is creating opportunities for foreign investors who are eager to develop China’s reserves. Chinese companies are similarly looking to acquire stakes in foreign projects for commercial and strategic reasons, and importantly, to develop their know-how and expertise in this relatively
