China adjusted downwards its shale gas production estimates

China adjusted downwards by a half its shale gas production estimates. According to initial estimates of 2012, 50-80 Bcm were to be produced by 2020. The latest estimates by Chinese government state just 30 Bcm.

Only one considerable shale gas basin (Fuling, located in southwest Sichuan Province) was found after four years of exploration. Fuling Basin's resources are estimated at 2.1 Tcm. However, experts warn that shale gas production may prove to be difficult, as regional geology is complicated, production costs are high and adequate infrastructure facilities are not available.

Exploration projects are conducted in China mainly by government-owned Sinopec Corp and Petro-China corporations. Foreign companies have a limited effect on the ongoing operations. So far, only Shell and Hess Corp. have signed cooperation agreements with the Chinese corporations.



author: abar

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