China approves shale gas deal with Shell

China has approved a product-sharing contract between China National Petroleum Corporation and Royal Dutch Shell (RDS.A.NYSE, RDSA.LON, RDSA.AMS) to tap southern Sichuan province’s Fushun shale gas block, Reuters reported. Government approval comes a year after the contract was signed, making it the first government-backed deal of its kind, said Shell spokesperson Li Lusha. While some global energy firms have said that regulators in Beijing do not have a sufficient framework to develop shale gas fields, Shell told Reuters in August that it will spend at least US$1 billion every year exploring China’s shale gas.