Although production rates were small as of 2013, the volume of technically recoverable shale gas in China has been estimated to be 1,115 trillion cubic feet (31.6 trillion cubic meters), the largest of any country in the world. As of 2013, China is one of only three countries (with the US and Canada) to produce shale gas in commercial quantities.

China is turning to natural gas as a way to decrease air pollution created by burning coal. In 2011, 70 percent of China’s energy consumption came from coal, 18 percent from oil and only 4.5% came from natural gas. Although conventional natural gas production in China has increased rapidly since 2000, it has not kept up with demand, and China has increasing imports of gas. In 2011, China consumed 147 bcm of natural gas, but produced only 107 bcm; the remainder, 27 percent of national consumption, was imported.Shale gas is seen as a way to reduce or eliminate dependence on imported gas.