Surveyors looking at the one of the gas wells in the field. The field is located in Fulin county of Chongqing municipality. [Photo: baidu]
It’s been confirmed that China’s first shale gas field has over 100 billion cubic meters of proven reserves.
The Ministry of Land and Resources says the field, which is located in Southwest China’s Chongqing municipality, is highly productive, with daily output at each gas well exceeding 100,000 cubic meters.
Gao Bingqi, a senior surveyor with the country’s natural resources watchdog, says commercial development of shale gas is now viable.
“With the process of localization, the cost for shale gas exploration has been further lowered. For example, it used to take us about 100 million yuan to develop an exploration well, but now the cost has been lowered to 50-70 million yuan.”
Gao’s agency estimates that the recoverable shale gas reserve in China totals 25 trillion cubic meters in total.
A government work report has set a target to produce 6.5 billion cubic meters of shale gas annually by the end of next year.