Sinopec produced 970 mcm of gas from Fuling field in first half 2015

Sinopec Headquarters
Source: WikiCommons, author: WhisperToMe

Chinese state-owned oil and gas company – Sinopec Corporation – has produced 970 million cubic meters of gas from the country’s prolific Fuling field in the first six months of this year, Xinhua Finance Agency reported Wednesday, citing company statement.

With verified proven reserves of nearly 107 billion cubic metres, Fuling field is the country’s largest unconventional gas field in China. Cumulative shale gas production as of June 30, 2015 from Fuling field stood at 2.214 billion cubic meters and 2.036 billion cubic meters of shale gas were marketed from the Fuling area.

It is widely-known that the Fulling field holds a great potential. This week has seen promising news about a new field in the country’s Henan province with estimated technically recoverable reserves of 12.75 billion cubic meters. But so far the Fuling field has been the only one delivering consistent results when it comes to shale gas production. Unsurprisingly, China pins a lot of hope on the Fulling’s production.

In December 2014, the portal Asian Oil & Gas reported that Sinopec completed 75 test wells at Fuling, resulting in a boost in production capacity target of 2 Bcm. This number has now gone up to 119 shale gas wells in production and 13 wells in trial operation, Xinhua Finance reported. Sinopec hopes to produce 3.2 billion cubic meters of shale gas from the field in 2015, with a view to ramp up output to 10 Bcm by 2017.

Back in February, Shi Yuanhua, technical director of well-logging at Jianghan Petroleum Administration Bureau, was even more optimistic about the field’s capabilities when he told InterFax he was confident Chongqing could achieve its target of 20 bcm/y by 2020.

“Fuling shale gas project can give good returns. Our investment will not stop,” said Sinopec Chairman Fu Chengyu at the company’s annual results briefing in April.

Meanwhile, a new 136.5 kilometre pipeline connecting the Fuling shale gas block to the company’s Sichuan-East China pipeline network transporting gas to China’s eastern regions was completed by Sinopec in May this year. With a designed transmission capacity of 6 billion cu m/year and costing $290 million to complete, this is the first high-pressure shale gas pipeline with significant transmission capacity to be commissioned in the country.

China is eager to move their energy production from highly-polluting coal to a cleaner-burning natural gas in the hope to fight air pollution that has been a blight on the country’s major cities.

The country is estimated to have 31,573 billion cubic metres (1,115 trillion cubic feet) of gas – the largest shale gas reserves in the world.

Image: Sinopec headquarters in China

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