China's Chongqing Plans to Have Shale Gas Production Capacity of 30 Bcm by 2020

China's Chongqing municipal government last week announced plans to build shale gas production capacity of 30 billion cubic meters (bcm) by 2020 with an annual output of 20 bcm.

According to the plan, the city will implement strategies for vertical integration in the shale gas industry. It intends to invest in exploration and development, equipment manufacturing and cluster development to create shale gas development zone.

Chongqing has been at the forefront of China’s shale gas industry.

In July last year, Sinopec’s Fuling field in Chongqing was verified by Chinese government as country’s largest shale gas play. China’s Ministry of Land and Resources verified proven reserves of nearly 107 billion cubic metres (bcm) in the Fuling shale gas field.

In October, Sinopec said that cumulative output from its Fuling shale gas project crossed 1 bcm.

The government expects country’s shale gas output to hit 6.5 bcm this year.