Output at PetroChina’s Changning-Weiyuan Shale Gas Block Pips Annual Output Target

PetroChina’s Changning-Weiyuan block in China’s Sichuan province has produced a little over 1.8bn m³of shale gas as of first week of October, surpassing the 2016 target of 1.5bn m³. It now expects the full year shale gas output from the block to touch 2.1bn m³, CNPC, PetroChina’s parent company, said in a statement October 25.

Changning-Weiyuan block was designated a national demonstration zone in March 2012 by the National Development and Reform Commission. The demonstration zone was completed In January this year. The block currently has a total of 107 production wells. The total capacity of the block is 2.5bn m³.

In the past few years China has been working hard to exploit its vast shale gas reserves. According to experts, China has achieved significant level of localisation in shale gas exploration technology. CNPC and Sinopec are the two state owned firm current dominant in the shale exploration sector. Sinopec’s Fuling shale gas field produced 3.76bn m³ of gas during January-September, up 107% year-on-year, CNPC said in a report October 20.

The Ministry of Land and Resources said Chinese shale gas output reached 4.47bn m³ in 2015, up almost 259% year on year. However, last year’s production missed a government target of 6.5bn m³.

Shardul Sharma