Sinopec Aims for 15 bcm Annual Shale Gas Output Capacity in Chongqing by 2020

Sinopec is aiming to produce 10 billion cubic meters (bcm) of shale gas by 2020 from its Chongqing field.

The company made this announcement on Monday. It further stated that the target is to have production capacity of 15 bcm by 2020. Sinopec also said it signed a cooperation agreement with Chongqing Municipal Government on May 19. As per the agreement the two parties will work to keep gas prices stable in the long-term, explore for shale gas and expand gas station network.

The first phase of Sinopec's Fuling shale gas field in Chongqing went into production last year. 

Asia’s biggest economy is working on building a substantial shale gas infrastructure. Despite many hurdles, the industry has managed to achieve significant progress in last few years. China’s recoverable shale gas reserves last year jumped 109 bcm to 130 bcm.

Ministry of Land and Resources (MLR) said country’s shale gas output reached 4.47 bcm in 2015, up almost 259 percent on year. However, last year’s production missed government’s target of 6.5 bcm.