China shale-gas auction flooded with bids

China’s Ministry of Land and Resources said Thursday it received 152 bids from 83 companies for shale-gas blocks in its second auction, reflecting strong commercial interest in the sector, The Wall Street Journal reported. The auction offered companies development rights to 20 blocks in eight provinces and municipalities. The demand came as a surprise due to the high development costs and lack of technology for the unconventional resource. The first auction in June saw just six companies bid for exploration and development rights on four blocks and only one awarded each to China Petroleum & Chemical (SNP.NYSE, 0386.HKG, 6700028.SH) and Henan Provincial Coal Seam Gas Development & Utilization. The ministry will announce the winners next month after assembling a panel to review the bidders’ investment budget, experience and safety record in developing unconventional resources.