China will exclude foreign firms from bidding in its second tender for shale gas blocks, despite a need for overseas technology to help exploit massive reserves of gas trapped within shale rock formations in the world’s top energy user.

China launched its shale gas push in late 2009, inspired by a shale boom in the United States

Shale gas development in still at the early stage in China, where technically recoverable reserves of the unconventional fuel are estimated to be even higher than in the United States.

In its first public disclosure of requirements for bidders, the Ministry of Land and Resources said only domestic firms with registered capital of more than 300 million yuan ($47.43 million) could bid.

The firms must also have licenses to explore oil and gas or other gaseous mineral resources, or cooperate with businesses holding such licenses.

Bidders must be independent legal entities and joint…