China’s National Petroleum Corporation is to link up with Shell in a bid to find new sources of gas.
The Anglo-Dutch major is to join forces with CNPC for upstream and downstream projects, including shale exploration and deep sea projects.
The move marks the first overseas visit by Shell chief executive Ben van Beurden since taking charge of the supermajor at the turn of the year. He told CNPC chairman Zhou Jiping that both companies have room for further cooperation after setting up wide rangign ties.
Shell already heavily invests in China, including plans for a $12billion refinery complex in the east of the country, and is one of the country’s largest suppliers of liquefied natural gas.
The deal will extend the relationship between the two companies to hunt for shale gas in the west of China, with Shell’s experience in the US fracking industry being brought to open up the country’s shale potential.
