Chinese invest in US shale gas

Industrial fuels and power reports major investments in the US shale gas boom by China's Sinopec and Total SA from France :-

China’s Sinopec and Total SA from France made major acquisitions in the US energy sector as they invested US$4.5bn into deals to buy into the country’s shale rock formations.

Sinopec’s Sinopec International Petroleum Exploration & Production Corp made its first foray into US shale with a US$2.2bn investment to create a joint venture with Devon Energy Corp. The purchase gives Sinopec a one-third stake in five fields.

Total concluded a US$2.3bn with Chesapeake Energy in its second joint shale venture with the US firm.

Many US oil and gas producers have been busy buying up rights that allow them to tap into the lucrative shale deposits under development in various states, including Texas, Pennsylvania and Ohio. However, to help pay for the expensive hydraulic fracturing technology necessary to extract the gas from the rocks, many require additional investment partners. “It looks like the preferred transaction structure for a lot of these players, whether they are European or Asian, who are behind the curve on this technology. The more exposure they get, the better,” said Mark Hanson, oil and gas analyst at Morningstar Inc.