Chinese shale gas production to rise: CNPC

Chinese shale gas production is expected to scale up after a decade of hard work, state-owned CNPC president Luguang Li said yesterday at the World Gas Conference.

CNPC's overall gas production exceeded 100bn m3 in 2017, or 71pc of China's output. Shale output from the Sichuan basin represented 3pc of the total, or 3bn m3, Li said.

Shale gas production is expected to rise to 12bn m3 in 2020, Li said. CNPC also has production from the South China Sea, as well as conventional gas, and is moving into production of methane hydrates and coalbed gas.

Li said usage of natural gas is growing the fastest of any fuel in the country. "The domination of coal must quickly turn to gas, the most realistic choice," he added.

Chinese gas consumption was 237bn m3 last year, 39pc of which was imported by pipelines from neighboring countries and LNG, since the country's pipeline infrastructure cannot satisfy demand.

CNPC, parent company of state-owned Petrochina, as well as state-controlled energy companies Sinopec and CNOOC, all are increasing imports, focusing on reliability, affordability and the commutability of gas resources, Li said.

Consumption is expected to rise 35pc by 2020, Li said, with usage increasing in all sectors of the economy. By 2030, gas consumption in the country should be about twice that of current levels.