OREANDA-NEWS. September 23, 2014. Royal Dutch Shell plc (ADR) (RDS.A) announced that it plans on cutting down investment in the shale gas project it signed up for in China’s Sichuan province.

The company made the decision due to geological challenges, and dense population in the area. The Anglo-Dutch oil giant signed the agreement with the government of China in March, to help the country meet its growing energy demand by investing in major projects. Shell agreed on exploring shale gas projects in the Sichuan Basin in collaboration with China National Petroleum Corporation.

Though Shell did not disclose the amount it would invest in the project, it stated that it would spend USD 1 billion every year in developing China’s shale gas reserves.