Sinopec Group to Accelerate Shale Gas Development in Chongqing

Sinopec Group and municipality of Chongqing signed a strategic cooperation agreement on shale gas development on Saturday, according to news agency Xinhua.

The aim is to reach annual shale gas production levels of 5 billion cubic meters by the end of 2015 and 10 billion cubic meters by 2017.

Sinopec Group plans to invest 24 billion yuan (approx. $4 billion) in the first phase on the development of shale gas with over 2 billion yuan (approx.. $0.33 billion) already spent in last several years, Xinhua reports citing a news report in local media.

As per the agreement, Sinopec Group will accelerate the development of the Fuling State-level Shale Gas Demonstration Zone while Chongqing will have the preemption right on the purchase of shale gas output from the demonstration zone to meet its gas demand from industries, residents and LNG production, says Xinhua.

Sinopec Jianhan Oilfield Company, a subsidiary of Sinopec Corp. and developer of Fuling shale gas block, would add 100 shale gas wells and bring the number of shale gas platforms to 42 from 32 within 2014.

The shale gas output rate currently stands at 2.2 million cubic meters with the drilling of 90 wells completed and another 40 ones under way.

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