Shale Gas Development and Environmental Governance in China

Facing immense pressure to solve environmental problems due to domestic air pollution and international climate change, China has identified natural gas as a critical alternative to replace coal, the dirtiest yet most abundant fuel in China’s energy mix. With limited domestic resources of conventional natural gas and security concerns of international import, China has kept a keen eye on the shale gas success in the United States and its own vast untapped resource base. This chapter examines its shale gas development in the past decade. After a discussion on the development of shale gas at national and international levels, we will explore the local situations in greater detail in Sichuan and Tarim Basins, the largest two shale gas basins in the country. Multiple interests—domestic, international, industrial, technological, governmental and environmental—have been interacting with each other to shape the evolution and explain the current development status.