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China will renew subsidies on shale gas exploration as part of efforts to optimize the country's energy structure. The Ministry of Finance announced on Wednesday that a subsidy of 0.3 yuan (0.049 U.S. dollars) will be offered for every cubic meter of shale gas developed by enterprises during the 2016-2018 period, down from the 0.4 yuan provided for the 2012-2015 period.

From 2019 to 2020, the subsidy will be further lowered to 0.2 yuan for every cubic meter of shale gas exploration, the ministry said, adding it will adjust the policy in accordance with the sector's growth, technology, and changes in cost.

Exploration of shale gas, an unconventional source of natural gas, has grown in China amid government efforts to promote the use of clean energy.

A report by energy giant British Petroleum (BP) predicted on Tuesday that China will become the world's second-largest shale gas producer by 2035, behind only North America.

From 2025 to 2035, China's shale gas output will grow by an average of 33 percent every year. By 2035, China and the United States will provide some 85 percent of global shale gas output, according to the report.