In a report from Reuters, Sinopec announced on Monday that it is targeting an annual shale gas production capacity of 15 billion cubic metres (bcm) and annual shale gas output of 10 bcm from the Chongqing field by 2020 and has signed a strategic cooperation agreement with Chongqing Municipal Government. As part of the agreement both parties will work to keep gas prices stable in the long-term, explore for shale gas and expand the gas station network.
China’s commitment to developing its shale reserves in the hope of replicating the success of the United States has been well documented, with the transition from coal-powered energy generation to natural gas a priority for the country which suffers considerably from air pollution.
Despite many hurdles, the industry has managed to achieve significant progress in the last few years, with the country’s shale gas output reaching 4.47 bcm in 2015, up almost 259 percent according to the Ministry of Land and Resources.
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