China is extending its subsidy program for unconventional gas drilling through 2029 to boost domestic energy security. The fund, with a 2025 budget of 3.2 billion yuan ($440 million), supports shale gas and coal bed methane drilling.
Shale gas output hit a record 25 billion cubic meters last year, while Shanxi, producing 80% of China’s coal bed methane, will receive 30% of the 2025 budget.Beijing has been actively urging its major oil companies to sustain crude production levels while significantly increasing natural gas output.
This strategy aims to reduce the country’s heavy reliance on foreign energy imports and enhance domestic energy security.
As the world’s largest importer of both oil and gas, China is seeking to diversify its energy sources, strengthen its self-sufficiency, and mitigate potential risks associated with global supply disruptions.
