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PetroChina finds shale gas reserves in China

08 December 2011 14:20 (UTC +04:00)

Baku - APA-Economics. PetroChina has discovered shale gas in Chinaâ€™s Sichuan province, confirming that the energy-hungry country is sitting on vast reserves of this unconventional fuel source, APA reports citing Financial Times.

Shale gas, or natural gas trapped inside deposits of shale rock, is expected to transform Chinaâ€™s energy supply in future decades by providing a potentially cheap and plentiful new source of fuel for the worldâ€™s biggest energy consumer.

PetroChina, the listed subsidiary of Chinese oil and gas producer CNPC, told the Financial Times it had drilled about 20 wells in its shale gas acreage in southern Sichuan province and that initial results had been positive. â€œThe wells are producing more than 10,000 cu m of gas per well per day,â€ said Mao Zefeng, PetroChina senior assistant secretary to the board. â€œWe are still assessing the exact size of the potential reserves.â€

Shale gas is produced by injecting wells with highly pressurised water and chemicals, a process known as â€œfrackingâ€ that cracks open rock to release natural gas. The technique has revolutionised energy markets in countries such the US, the worldâ€™s largest producer of shale gas, by driving down natural gas prices.

China does not yet have any shale gas wells producing commercially, but several companies have exploratory projects underway, including Sinopec, PetroChina, Royal Dutch Shell, BP and Chevron. China has more shale gas reserves than any other country in the world, with 1,275tr cu ft of recoverable shale gas reserves, according to estimates from the US Energy Information Administration. That is enough to supply China for more than 300 years, based on current consumption levels.