Beijing will cut government subsidies to shale gas developers from RMB0.4 (US$0.06) per square meter produced to RMB0.3 from 2016-2018 and to RMB0.2 from 2019 to 2020, Bloomberg reported, citing a statement from China’s finance ministry. Domestic energy executives have urged the government to extend the current subsidy to 2020 or 2030 to spur growth, but China has reduced its shale gas production target for 2020 to about 30 billion cubic meters, roughly a third of its original goal as the industry has faced problems arising from difficult geology, limited exploration rights and lack of infrastructure.
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