May 15th, 2012 | Caixin China’s First Shale Gas Wells Near Production
The project in Sichuan Province will start running in June, Sinopec says
China Petrochemical Corp. (Sinopec) says it will start to pumping gas from a shale project in the southwestern province of Sichuan in early June – the first such production in the country.
This project is in Fuling, Sichuan, and will be completed by two subsidiaries of Sinopec: Jianghan Oilfield and Exploration Southern Co. Jianghan Oilfield is responsible for production and output, and Exploration Southern Co. conducted exploratory work.
Exploration Southern Co. chose the Daanzhai area in Fuling for drilling, and two shale wells – Xinglong 101 and Fushi 1 – will be the first to produce.
Sinopec, the largest integrated petroleum and petrochemical enterprise in China, said the project in Fuling was significant in the overall development of shale oil and gas production in China.
The shale process involves removing oil and gas from sediment or rock.
The government made shale gas a priority in its Twelfth Five-Year Plan, which covers 2011 to 2015. It wants to produce 6.5 billion cubic meters of shale gas per year by the end of 2015.
In 2010, a Sinopec subsidiary teamed up with BP Plc., of the United Kingdom, to explore shale gas in Guizhou Province, also in China’s southwest. In 2011, the Exploration Southern Co. conducted geological research with Exxon Mobil Corp. in Sichuan Province.
On April 28, Sinopec International Petroleum Exploration and Production Corp., a wholly owned subsidiary of Sinopec, bought a shale oil and gas project in the United States from Devon Energy Corp for US$ 2.4 billion.
By staff reporter Wang Yong