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Hoping that the technical expertise of foreign firms can help the country in extracting the resource, foreign investment will now be allowed by China in its growing shale gas industry.

China excluded foreign companies in its first tender last year. However during the second auction, which was launched on Thursday, the country allowed foreign firms to apply for permits to explore and develop shale gas sites through partnerships with Chinese firms.

Some global energy firms are keen to participate in the Chinese shale gas exploration sector, including France's Total SA, which has been negotiating with Sinopec for a possible drilling project in East China's Anhui province.