China Shenhua Energy, US ECA to jointly develop shale gas in US

24 December 2013 06:57 Source:ICIS News

SINGAPORE (ICIS)--China Shenhua Energy said on Tuesday that it has entered into an agreement with Energy Corporation of America (ECA) to jointly develop a shale gas project in Pennsylvania state of US.

The project includes 25 gas wells with depth of 7,850-8,250 feet and its recoverable volumes in the first 30 years are estimated at 134.3bn cubic feet, Shenhua Energy said in a statement.

Total investment in the project is predicted to be approximately $146m (€107m), of which $90m will be invested by the Chinese firm’s US-based subsidiary and the rest to be equally shared by the subsidiary and ECA, according to the statement.

The project has obtained approvals from both Chinese and US governmental authorities, it said.

($1 = €0.73)

By Fanny Zhang