The PRC, one of the world's largest gas importers, suddenly became a gas power. According to Reuters, China Petroleum and Chemical Corp. (Sinopec) has sharply raised its estimate of the country's proven shale gas reserves.
This refers to the reserves of the Chinese Fulin Shale Field (Sichuan Province in southwestern PRC). Earlier, Sinopec estimated its reserves at 191.8 billion cubic meters. And now the corporation has quadrupled that figure to 792.6 billion cubic meters.
As a result, China is one step closer to fulfilling the government's plans to improve energy security. As part of this program, Sinopec should double the production of shale gas by 2025 – up to 13 billion cubic meters a year.
There will probably not be a shale revolution in the PRC
However, many experts believe that a real shale boom similar to the American one should not be expected in China. Yes, China has huge potential reserves of shale gas, and the country's demand for this fuel is growing very rapidly.
However, it is unlikely that China will be able to extract them in the short or even medium term. Shale gas deposits in the PRC are located in remote, geologically complex areas. The deposits are located in mountainous regions, and shale pockets containing gas are located much deeper than in the US
In addition, the remoteness of shale basins means that China does not and will not have sufficient infrastructure to produce and transport everything for a long time. of this “blue fuel”. However, the PRC is known for its perseverance in overcoming difficulties and has already achieved considerable success.
Due to the geological nature of local shale deposits, CNPC and Sinopec have developed their own fracturing methods. The companies have also significantly reduced their drilling costs. Compared to 2010, the cost of one exploration well has decreased by 40%, and the cost of a production well by 25%.
In addition, the PRC government helps shale companies. In 2018, it cut the tax on shale gas production by 30%. Subsidies have also been introduced, which currently amount to 0.3 yuan for the production of a cubic meter of shale gas. : ///
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