Sinopec Establishes Shale Firm in Hubei
Chinese oil and gas explorer Sinopec and Enshi State-owned Capital Investment and Operation Co. have established a company that will explore for shale gas in Hubei province, Sinopec said on July 1 in a statement.
Sinopec Hubei Shale Gas Investment Co. was established in Enshi Tujia and Miao Autonomous Prefecture and will take overall responsibility for shale gas exploration and development in the Hubei province, Sinopec said.
According to the company, the Enshi Prefecture is rich in shale gas resources, and its exploration reserves account for half of the total in Hubei province. In October 2019, the ministry of natural resources established a national-level shale gas exploration and development demonstration zone in western Hubei to accelerate the exploration and development of shale gas in the Yangtze River Economic Zone.
China is looking to develop its large shale gas reserves to boost the supply of locally produced gas. However, it has not achieved much success. Last year China produced just under 11bn m³ of shale gas, which was only 7% of its total gas production of 161 bn m3.