June 21, 2011. China is drafting a plan to develop domestic shale-gas reserves during the five-year period ending in 2015 as demand rises in the world's largest energy consumer. The government may offer financial support and tax incentives to spur domestic explorers to extract shale gas. PetroChina Co., Asia's largest oil producer, is leading companies to tap unconventional gas resources, including gas in shale rock, to help cut reliance on oil and coal. China may have 26 trillion cubic meters of shale-gas reserves, more than 10 times its proven holdings of conventional natural gas. PetroChina's parent, China National Petroleum Corp., and Royal Dutch Shell Plc are currently exploring the Jinqiu shale- gas block in southwestern Sichuan province. Shell and PetroChina are already operating the Changbei tight-gas field in the Ordos Basin in northern Shaanxi province and exploring the Fushun- Yongchuan block in Sichuan.