Shale Gas Exploration and Development Progress in China and the Way Forward

Shale gas exploration in China started late but is progressing very quickly with the strong support from Central Government. China has 21.8 tcm technically recoverable shale gas resources and 764.3 bcm proved shale gas reserve, mainly in marine facies in Sichuan basin. In 2016, overall shale gas production in China is around 7.9 bcm, while it is set to reach 10 bcm in 2017 and 30 bcm in 2020. BP is the only remaining IOC actor in shale gas exploration in China partnering with CNPC in 2 blocks in Sichuan basin. China is encouraging shale gas business both at Central level and at Provincial level through establishing development plan, continuation of subsidies and research funding. Engineering services for shale gas development and infrastructures are developing, while the overall cost and gas marketing conditions will be key factors for the success in shale gas industry.