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27 Sep 2023

China Extends Resource Tax Concession on Shale Gas to End-2027

27 Sep 2023  by reuters   
A natural gas appraisal well of Sinopec is seen behind a treatment pond of drilling waste in Langzhong county, Sichuan province March 1, 2011. REUTERS/Stringer/File photo Acquire Licensing Rights
China will extend a resource tax concession for shale gas development to end-2027 to help boost domestic natural gas supplies, according to a joint statement from the Ministry of Finance and the State Administration of Taxation on Wednesday.

The government will continue a 30% concession to the 6% resource tax for developing shale gas, the ministries said, extending a policy that began in 2018.

China, the world's top energy consumer and the largest greenhouse gases emitter, is looking to boost the use of natural gas as a key bridge fuel to achieve its 2060 carbon-neutral goal.

In 2022, the country produced 24 billion cubic meters of shale gas, mostly from southwestern Sichuan basin, accounting for 11% of total domestic gas output.

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