July 5 - Senior managers from the world's leading oil companies are set to descend on China this summer, as the country holds its first licensing round for the production of shale gas, which could be good news for project logistics companies focussing on

HLPFI understands that successful applicants will be expected to hydraulically fracture a minimum number of wells and it would appear that China is keen to repeat the success that the US has achieved in transforming its energy outlook through the production of shale gas.

The country desperately needs gas to help cut the pollution caused by the country heavy use of coal for electricity generation.

China's latest five-year plan for the country's economy focuses on energy efficiency and clean fuel and plans are in place to reduce the amount of energy consumed per unit of GDP by 16 percent.

That would require a switch from coal to more nuclear and more renewable energy, as well as gas. China plans to increase the percentage of energy derived from gas to 8.3 percent by 2015. Coupled with the country's rapid growth, this suggest a massive increase in annual gas consumption. Hence the focus on the shale - watch this space.

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