China to launch second shale gas tender

China will kick off its second shale gas exploration tender on Oct 25 in Beijing with an offer of 20 blocks to Chinese energy companies or joint ventures with Chinese companies taking the majority stake, authorities said on Sept 10.

The blocks in the tender are mostly in Guizhou, Hunan and Hubei provinces and Chongqing, covering an area of about 20,000 square kilometers, according to the tender announcement published on the website of the Ministry of Land and Resources on Sept 10.

The statement requires that bidders have a registered capital of more than 300 million yuan ($47 million) and have an established presence in the oil and gas industry or have cooperated with oil and gas companies.

This is the second shale gas auction. The first in June 2011 offered four blocks to Chinese energy companies.

A report published on the website of the ministry in July said that China may have more than 36 trillion cubic meters of minable shale gas reserves, about 20 percent of the world's total.

Shale gas is natural gas formed from being trapped within shale formations. It has become an important source of energy, transforming the future world's energy outlook.