China natural gas output target at 176 bcm by 2015

China's energy authority on Monday issued a report entitled "Natural Gas Development 12th Five-Year plan". It specifies the six major tasks facing the government, and pledges to focus on the shale gas sector.

The National Energy Administration is targeting national natural gas production to reach 176 billion cubic meters by 2015, compared with 102 billion cubic meters in 2011. To that end, it's planning to build four major natural gas zones, with annual output of 20 billion cubic meters. It's also planning to speed up the construction of natural gas pipelines and networks. Under the plan, the government will push ahead with gas pricing reforms.

It will consider introducing differentials in gas prices to reflect seasonal demand, and look into establishing a national trading market. Shale gas is the key sector China will develop in the coming years. The country hopes to exploit 19 shale gas areas and begin commercial production.