China's shale gas costs are more competitive than imported fuel supplies, according to HSBC Holdings Plc.

The break-even prices for shale supplies, or the point at which producing the fuel is profitable, are estimated to be 1.5 yuan ($0.24) per cubic meter, Thomas Hilboldt, HSBC's Asia-Pacific head of oil, gas and petrochemicals research, said at a conference in Shanghai on Wednesday.

China's average imported natural gas prices are currently as much as 2.6 yuan per cubic meter.

"Provided shale gas comes to market at recently estimated prices, it will be more competitive than imports," Hilboldt said.