Gansu Daily; a local newspaper from a province in the northwest of China, has announced that a special plan on exploration and assessment of shale gas resources has been approved, which may kick-start exploration in what still is considered to be one of the poorest provinces in China.
Gansu’s economy is based on mining of the many of the province’s mineral resources, which include China’s largest nickel deposits, as well as on the Yumen and Changqing oil fields.
While shale gas drillng is a novelty in the area, exploring shale deposits is not entirely new to the province. Gansu is the home of the Lanzhou shale oil plant opened in July 2010 by the Chinese Yaojie Coal Electricity Group in cooperation with Sanjiang Coal Chemical Company.
Longhua Harbin Coal Chemical Industry Company, a subsidiary of China National Coal Corporation, opened shale oil plant in July 2010 with the capacity of 1,000 tonnes of shale oil per day in Yilan, Heilongjiang. The plant uses hot recycled solids technology combined with fluidized bed retort. Similar plant is planned by the Songyasan Coal Mining Company.
Theses are still early days for shale gas in Gansu with geological surveys to be carried out in Longdong, Wuwei, Dunhuang and Chaoshui basins in the years 2015-2017.
Geological survey in Huahai-Jiuquan, basin, Minhe basin, Suganhu basin, Dingxi basin and Longxi basin would be executed in 2018-2020.
The Chinese Ministry of Land and Resources estimates that there are 2.67 trillion cubic meters of shale gas resources and 290 billion cubic meters of potential recoverable shale gas resources in Gansu province.
Source: Natural Gas Asia
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