It has been a good couple of weeks for Chinese shale, with both state-owned exploration companies; PetroChina and Sinopec, reporting impressive results. Towards the end of August, PetroChina, for the first time since it has begun exploration, submitted over 163 billion cubic meters of proven shale gas reserves in its Sichuan blocks to the Ministry of Land and Resources.
The Sichuan discoveries “have been proven in two blocks of Weiyuan county and one block of Gongxian county,” said Zhou Zeshan, an information officer with PetroChina Southwest Oil and Gasfield Co in Chengdu, Sichuan.
According to Wang Lanshan, a chief geologist in charge of shale gas development in the company, the proven shale gas reserves are tantamount to those of 130 million tons of crude oil because the quantity of heat produced with the burning of 1,255 cubic meters of shale gas is the identical to the burning of 1 ton of crude oil.
“By the year 2020, Sichuan will produce between 5 billion and 8 billion cubic meters of shale gas a year. And one-third of the natural gas output will come from shale gas,” Wang said.
Meanwhile, the shale development of the Fuling field doesn’t disappoint either, with Sinopec Corporation recording 208,000 cubic meters of daily output from Jiaoye-8 shale gas well in the area.
According to Xinhua Finance, Sinopec is aiming to build 5 billion cubic meters and 10 billion cubic meters of shale gas production capacity in Fuling area by the end of 2015 and 2017, respectively, and the Jiaoye-8 well may go a long way to helping reach that target. The discovery adds around 100 billion cubic meters of shale gas resources in Pingqiao faulted anticline with an area of 110 square km, the Sinopec announced.
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