Last week we had the game changing story of Chinese investments that take advantage of North American shale gas. But first in Australia, in a similar vein, Sinopec are on the prowl in another empty, resource rich Commonwealth country:
China's biggest move so far to buy into technology that will increase its own gas reserves is its $3.44bn 50:50 joint venture with global energy major Royal Dutch Shell's to buy Arrow Energy.
It may be expensive, but the technological payoff for China is enormous.
The country has an estimated 30 trillion cubic metres of untapped coal-seam gas, and 36 trillion cubic metres of shale gas. To put that in perspective, BG has 0.3 trillion cubic metres.
"All they are in it for is the technology. All those who are wondering why they are paying 36 times — or whatever the number — what it is worth are missing the point ," one analyst said.
They just want the technology. All they want is the secret fracing sauce. And at 36 times earning, it's a steal.