China’s Ministry of Land and Resources (MLR) has approved setting up of a comprehensive shale gas exploration test area in northern part of Guizhou province.
Construction of the test area is expected to start this year and would likely be complete by 2020 and will have a production capacity of 1 billion cubic metres per year, the provincial government said in an announcement on Tuesday.
The provincial government also stated that the zone is estimated to contain 3.88 trillion cubic metres of shale gas in place.
“The main purpose of the test area is to carry out theoretical studies of shale gas geology, exploration and development of technology to enhance research, and prove shale gas reserves as quickly as possible,” the government said.
The Guizhou government plans to form a comprehensive exploration system for various resources – including shale gas, CBM, and conventional oil and gas – with a mix of public and private ownership.