Agricultural Land Challenges in China’s Shale Gas Development: An Analysis of Institutional Barriers and Reform Pathways

China regards shale gas as a key energy source for ensuring energy security, promoting the transformation of the energy structure, and addressing climate change. However, at this stage, the scarcity of land resources, coupled with various institutional restrictions, has brought numerous practical obstacles to the large-scale commercial development of shale gas. By analyzing the restrictive provisions concerning shale gas development in China’s current laws, this paper points out three major institutional constraints faced by the use of agricultural land for shale gas development: first, stringent land use control policies; second, the legal acquisition system for surface land remains unstable; third, institutional gaps in the supervision of subsurface space on collectively owned land. To overcome these institutional barriers, this study proposes fundamental reform measures for the current land legal framework. If comprehensive reform cannot be achieved immediately, partial breakthroughs may be sought within the existing institutional framework. The sequence has three phases. Near-term one to three years: negative-list quotas, refined land classification, land linkage, benefit balance, and community guidance. No law changes needed; provinces can act. Medium-term three to seven years: regulations and the mining land chapter in the revised Mineral Resources Law. Long-term beyond seven years: constitutional amendment for collective land transfer and dual-track supply reform. This study provides a theoretical reference for solving the land use issues in China’s shale gas development, and its conclusions also provide a reference for resolving the conflicts between shale gas development and agricultural land use in other jurisdictions.