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Report on Shale Gas in China (2014) Released

Updated:Oct 15,2015
Meeting of geological survey and assessment of shale gas was recently held by China Geological Survey(CGS), andReport on Shale Gas in China (2014) was released at the meeting. After the commercial development of shale gas in Fuling,Chongqing municipality, oil companies accelerated the  capacity building for exploration and development in demonstration areas in southern Sichuan province and northern Guizhou province, and more commercial development bases will be established hopefully in the future.

The Report on Shale Gas in China (2014)revealed that large-scale exploitation of shale gas has been carried out in some parts of China, but overall was at the initial stage. The first project for exploration of shale gas in china was launched in October 2009 in Qijiang County, Chongqing municipality, which marked the kick-off of the exploration and development of the new type energy ---- shale gas in China.The cumulative investment has reached 23 billion RMB up to the end of 2014. 54 permits for exploration were issued, covering 170,000 km2 of the territory. Major breakthroughs were made in Fuling district of Chongqing municipality,Changning and Weiyuancounty of Sichuan Province, including three grades of geological reserves of nearly500 billion m3, with proved geological reserves of 106.7 billion m3 and capacity of 3,200 million m3 per year.
The Program of Geological Survey for Terrestrial Energy Mineral Resources, as one of the Nine Programs of China Geological Survey from 2015 to 2020, will strengthen the basic supporting role by putting more efforts on shale gas survey. Geological survey and assessment of shale gas, select of strategic zones and exploration demonstration will be carried out with the implementation of the Sub-plan of Basic Geological survey for Shale Gas in Southern China in such areas as Paleozoic marine facies of South China and the upper Paleozoic marine-terrigenous facies of northern China.

The  program will have four main tasks as follows:1. to get the whole picture of shale gas resources in China;2. to build geologic theory of petroleum entrapment of marine shale gas and continental shale gas in complex structures; 3. to establish exploration and development system and standard system of shale gas that fit the characteristics of China’s geological features; 4. to delineate 80~100 prospective areas and 100~120 preferable zones for companies to conduct further exploration, thus contributing to the goal of annul output of 3,000 million m3 at the end of the 13th Five -year Plan.

Over 90 leaders and experts in relevant departments of Ministry of Land and Resources and some major companies such as Sinochem Group, Sinopec Group, China’s Shenhua Energy attended the meeting. China daily, Xinhua News Agency and CCTV among other media covered the event.