China aims to boost shale gas output by a third in 10 years

Key facts

• Sinopec is ramping up exploration in China's Sichuan basin shale formations.
• The goal is to increase China's shale gas production by one-third over the next decade.
• Beijing has a shale gas output target of 80 to 100 billion cu m by 2030.
• Sinopec recently booked proven natural gas reserves of 236 billion cu m from a project at 4,500 meters depth.
• Production from new deposits is expected to scale in two to three years.

China's state-owned energy giant Sinopec is intensifying its efforts to extract shale gas from deep formations in the Sichuan basin, aiming to significantly boost domestic production and reduce reliance on energy imports. The company plans to increase China's shale gas output by a third over the next ten years, targeting reserves at depths of up to 5,000 meters.

This push comes as China's current shale gas production falls short of government targets, which aim for 80 to 100 billion cubic meters by 2030. Sinopec recently achieved a breakthrough by booking proven natural gas reserves of 236 billion cubic meters from its Ziyang Dongfeng project at a depth of 4,500 meters, a significant development in ultradeep shale drilling.

Industry executives anticipate that production from these newly discovered deposits could scale up within two to three years. However, Sinopec acknowledges the considerable challenges involved, including reservoir uncertainties, complex accumulation mechanisms, difficulties in drilling through thick formations, and the extreme heat and pressure associated with ultradeep drilling.

Despite these obstacles, the exploration of shale gas is a critical component of China's broader strategy to enhance self-sufficiency in hydrocarbon energy. As the world's largest oil importer and a top-three natural gas importer, China is prioritizing increased domestic production alongside its expansion in alternative energy sources.