CNPC, Sinopec Boost Shale Gas Development Expectations

China’s major state owned energy firms have announced their development plans for the shale gas sector.

According to the China National Petroleum Corporation (CNPC), its commercial shale gas output is expected to reach 1.5 billion cubic meters in 2015, with a daily output of 5.38 million cubic meters, ChinaScope Financial reported. CNPC also projects its shale gas output to reach 20 billion cubic meters in 2020 and 50 billion cubic meters in 2030.

ChinaScope also said that China Petrochemical Corporation (Sinopec Group) plans to increase its proven shale gas reserves by 50 billion cubic meters in 2015, and to increase shale gas production capacity by 150 million cubic meters. By the end of 2015, Sinopec Group’s shale gas output is expected to reach 130 million cubic meters a year.

Market participants believe that the two oil giants will lead China’s shale gas sector as they have in possession the best shale gas blocks in China complemented by formulated development strategies, the news report added.