Pacific Institute for Climate Solutions

Tue, 2011-04-05 04:45TJ Scolnick
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There Goes The Neighbourhood: China Rushes To Develop Shale Gas At Home And Abroad

To satisfy its thirst for energy, China is very quickly becoming a big player in the shale gas industry. Unfortunately, whether at home or abroad, there also seems to be little concern from Chinese leadership for the destructive environmental impact of drilling for heavily polluting shale gas – which is often drilled for using the controversial hydraulic fracturing (a.k.a. fracking) method.

Domestically: Investing in shale gas in China
China’s National Energy Administration is quickly working to draft a plan to develop the country’s shale gas reserves, which are estimated at more than 10 times its conventional gas reserves.

Early in 2010, China’s Ministry of Land and Resources (MLR) set a target for the country to identify 50-80 shale gas areas and 20-30 exploration and development blocks by 2020. Moreover, the MLR’s Strategic Research Centre for Oil and Gas wants to produce 8-12% of China’s gas from shale wells by 2020.

State-controlled PetroChina (a.k.a. China National Petroleum Corporation) announced its intention to produce 500 million cubic meters of shale gas by 2015 and Sinopec Corporation also wants to exploit some 2.5 billion cubic meters of shale gas and coalbed methane in that time. Already, Royal Dutch Shell is drilling 17 gas wells, for both tight gas and shale gas, and plans to spend $1 billion a year over the next five years on shale gas in China.

Tue, 2011-03-08 09:59TJ Scolnick
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Liquefied Natural Gas Exports From Shale Drilling in British Columbia, Nearly A Reality

Last week, the proposed Kitimat liquefied natural gas (LNG) development project on British Columbia’s west coast, run by KM LNG Operating General Partnership, awarded the global engineering and construction firm KBR, a former Halliburton subsidiary, an engineering and design contract for an LNG export facility at Bish Cove, some 15 km’s southeast of Kitimat on land owned by the Haisla First Nation.

Although KM LNG is waiting for final approval from Canada’s National Energy Board (NEB) for a 20-year export license to transport of up to 13,300,000 103m3/year or 468 billion cubic feet/year of LNG, KM LNG is now a step closer to becoming Canada’s first exporter of liquid natural gas.

The majority of the gas will be sourced from shale deposits located in the northeast of the province, where hydraulic fracturing (or fracking) is widely used. From Bish, the LNG will transit on large tankers destined for markets in Asia beginning in 2015.

Fri, 2011-01-21 15:27TJ Scolnick
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Britain Ignores Tyndall Centre Report Urging Shale Gas Moratorium At Its Own Peril

Despite the evidence of significant potential risks presented in a recent report by the Tyndall Centre, the British government says it will forge ahead with plans for shale gas development in the UK. The Tyndall Centre’s study, “Shale gas: a provisional assessment of climate change and environmental impacts” [PDF], urged the UK to place a moratorium on shale gas in light of serious risks associated with shale gas development, including the contamination of ground and surface waters, the expected net increase of CO2 emissions, and substantial monetary costs which could delay major investments in clean energy technologies.

Shale gas extraction involves drilling into shale formations followed by a rock fracturing process which uses heavily polluting chemicals. Especially in the US with the introduction of drilling “refinements” known as hydrofracturing or “fracking,” shale gas extraction has become highly divisive, and ever more popular among natural gas producers (making up nearly 10% of production by some estimates). The significant water contamination and public health risks associated with shale gas are well documented in last year’s “Gasland” film.

Paul Monaghan, the Co-operative’s head of sustainability describes shale gas as “like tar sands in your backyard, both in terms of local pollution and in terms of carbon emissions.”

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