Sinopec Announces Major Shale Gas Discoveries
“China’s Sinopec has made two significant discoveries of shale gas in central-southwestern China containing over 100 billion cubic meters, the company has said, as quoted by the South China Morning Post.”
“The company added that the geology at the sites was challenging, with the reserves at depths between 3,300 and 5,500 meters. Despite the challenges, Sinopec’s test well at one of the sites had achieved daily rates of over 300,000 cubic meters, up from 89,000 cubic meters initially.”
“The news follows an announcement by Sinopec from late July, when the company said it had certified 147 million barrels in oil reserves at another shale deposit, in southwestern China. The Fuxing shale oil and gas field is in the Sichuan basin, and was the first successful predominantly oil play discovered in Sichuan, where companies have been mostly finding natural gas.”
“At the start of the year, China’s National Energy Administration said the country aimed to achieve crude oil production of over 200 million tons for the full 2025, while at the same time maintaining a stable pace of expansion in natural gas production.”