contract, Shell will share its shale gas technology with PetroChina. China is also courting private investment to underwrite infrastructure improvements, not only to increase domestic production, but also to gear up for increased imports. However, despite its
great need for foreign investment and technology partnerships, China has yet to offer incentives in the form of tax breaks or subsidies. As recently as March of this year, China imposed a “resource compensation fee” on both foreign and Chinese companies producing oil and
gas in the country. Foreign investors are also likely to worry about the possibility of nationalization after China’s hostile takeover of oil companies in 2005. China is investing in integrating its fractured pipeline network and plans to add nearly 15,000 miles of new
“China will require increased import options to meet its increasing need, and a number of other countries stand to benefit” 54 | BE americas