Shale Gas to Drive Chinese Gas Output Growth: Rystad
Tight gas and especially shale gas will drive China’s gas output growth over the next five years, Rystad Energy said on July 2 in a report. Thus, shale gas additions will stand at over 400mn ft3/day through to 2025.
“Over the next five years, gas output from conventional sources of production is expected to remain flat, supported by multiple large fields which are already producing at peak. Nevertheless, total gas production in the country will continue to grow, driven by unconventional sources of production,” it said.
Among tight gas projects, Changqing will drive future output growth with the Sulige field boosting gas supply by 350mn ft3/day as soon as 2020. Post-2020, tight gas additions are set to remain relatively stable with about 50mn ft3/day up to 2025. When it comes to shale gas, Longmaxi shale projects will provide stable gas output increases going forward. Fields in Weiyuan shale and Fuling shale, in particular, will contribute to gas supply growth over the next five years, Rystad said.
In total, gas production in China is projected to reach 17.2bn ft3/day in 2020, growing by 4% yr/yr, and reaching 19.6bn ft3/day by 2025.