ECF China Shale Weekly Review - Feb 16, 2020

Policy & Regulation

1. China’s Guizhou province sets shale gas target for 2025

* Citing a provincial government document, the report said Guizhou aims for proven shale gas reserves of 50 bcm and build an annual production capacity of 2 bcm by 2025

* Key production blocks include Zheng An and Xishui, while exploration work will be focused on Daozhen, Tongzi and Cengong blocks

* Provincial government-backed Wujiang Energy Group and Sinopec Corp will be the main firms developing the gas blocks

* China produced 10.9 bcm shale gas in 2018, less than 7% of national total gas output

* Landlocked Guizhou province, one of the country’s poorest, has few indigenous oil and gas producing assets, having relied on neighbouring regions for supplies of fuels   (Reuters)

Exploration & Production

2. China's first national shale oil demonstration area has produced nearly 25,000 tons of crude oil this year

From this year to February 12, Xinjiang Oilfield Company's shale oil demonstration zone has produced a total of nearly 25,000 tons of crude oil and verified a daily production level of 590 tons.

It is reported that in 2020, Xinjiang Oilfield Company plans to drill 48 new shale oil wells, build a new capacity of more than 390,000 tons, and produce more than 300,000 tons of oil.

Xinjiang Jimusar National Terrestrial Shale Oil Demonstration Zone, developed and managed by Xinjiang Oilfield Company Jiqing Oilfield Operation Zone, is the first national shale oil demonstration zone in China. The demonstration area was verified by experts organized by the National Energy Administration on October 15, 2019.

The Jimusar National Terrestrial Shale Oil Demonstration Zone is located in the eastern Junggar Basin in northern Xinjiang. It is one of the two billion-ton large oil fields discovered by Xinjiang Oilfield Company in recent years, and the other is the Mahu conglomerate oil field. According to the plan of Xinjiang Oilfield, by 2021, the production of Jimusar shale oil will reach 1 million tons, and it will reach 2 million tons in 2025, which will stabilize production for 8 years. This will help Xinjiang ’s 50 million tons of oil and gas equivalent production and China ’s domestic oil industry. The effective and stable production of 100 million tons of crude oil is of great significance (ECF)

3. CNPC Chuanqing Drilling: Weiyuan shale gas production reaches 2.02 billion cubic meters in 2019

As of December 31, 2019, CNPC Chuanqing Drilling Engineering Company's Weiyuan shale gas annual gas production reached 2.02 billion cubic meters, an increase of 136.8% over the same period in 2018, and the annual production target of 2.02 billion cubic meters was completed. Among them, the peak daily output in December was 6.93 million cubic meters, a record high.(ECF)

4. CNPC Zhejiang Oilfield increases Zhaotong shale gas investment

Since the beginning of the year, CNPC Zhejiang Oilfield has completed the geological design of environmental assessment for four Wells in the key evaluation block, which marks the official start of shale gas evaluation in Zhaotong area in 2020. On January 7, the fracturing of the first unconventional gas well YS129H in Zhejiang Oilfield in 2020 was completed.  (ECF)

Disclaimer: The above content was edited by Energy China Forum (, please contact ECF before reproduce.

Author:Wendy    News Time:2020-02-15


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