Related Articles
Forward article link
Share PDF with colleagues

Legal risks for foreign investors in China shale opening

The government is keen to lure foreign investors into the country’s unconventional gas sector. Hopeful developers must be clear about the rules, write Fung Lin Leung, senior associate, and Ben Smith, foreign legal consultant, Norton Rose Fulbright Hong Kong

China has lots of shale gas and its government is keen to see foreign investors help produce it. But before it can repeat some of the success of North America’s unconventional sector, China has much to address, including the regulatory regime for foreign participation, subsidies, access to pipelines, and water usage and protection.There’s no doubting the government’s enthusiasm. China has carried out two tendering rounds for shale gas exploration rights since 2011 and a third round expected this year. New policies have been introduced since 2011 to spur investment in shale gas, including a number of significant moves, such as the Ministry of Land and Resources’s (Molar) reclassification of t

Also in this section
Nigeria's election hangs over energy sector
19 April 2018
Africa's biggest economy is growing again. But next year's vote is stalling reform and investment in its crucial energy sector
Syria: ruthless business as usual
18 April 2018
The joint US-UK-French strikes on chemicals targets in Syria won’t affect the war—but they could damage Trump's image in the region
Elections a new rupture point in Venezuela crisis
16 April 2018
A Maduro loss in May's election could be a turning point, but recovery will be lengthy