02-02-2013, 11:22 PM
China does face many challenges with its shale deposits. That's been mentioned before as their formations are much tighter and more remote. And they lack the pipeline infrastructure that N America has. It won't stop them from trying but in the mean time they must pipe gas in as well as LNG. They keep building new regassification terminals as well as hope some of the offshore exploration pays off. They need LNG for the near future and I'd guess they lock up a lot of LNG contracts and foreign upstream assets to be sure. They can always sell them later.