ASIACHEM estimated that, China shale gas production will reach 8.5bnm3, an increase of 90% YoY, a substantial increase in the proportion of total natural gas production. It is expected that the national target of 30bnm3 shale gas output in 2020 will be successfully achieved.
National Bureau of Statistics data shows that, from Jan to Sept. in 2016, China natural gas production was 100.35bnm3, an increase of 2.2% compared to the same period of last year. Among, the output of unconventional natural gas was 12.3bnm3, an increase of 95.3%, and accounting for 12.3% of the total natural gas output, up 5.9 percentage points over the same period of last year.
Among unconventional natural gas, the coal bed methane production of 5.57bnm3, increase of 9%; shale gas production of 6.29bnm3, increase of about 90%; dense sandstone gas production of 440mnm3, increase of 115.4%. The increase of shale gas production is still a significant reason for the rapid growth of unconventional natural gas production.
According to the current production status of shale gas fields, ASIACHEM estimated that in 2016, China shale gas production will reach 8.5bnm3, an increase of 90% YoY. China natural gas production is expected to reach 138.5bnm3, increase of 2.66%. In the total natural gas production, the proportion of shale gas will rise from 3.3% in 2015 to about 6.2%.
Taking into account that in the past few years, China shale gas exploration and development achieved major breakthrough, which laid the foundation for the large-scale development during "13-5"; shale gas supported by policy as its industry position of major clean energy; market-oriented reform of natural gas will gradually activate natural gas industry chain, ASIACHEM believes that the national target of 30bnm3 shale gas output in 2020 will be successfully achieved.
