By JING YANG
in China, holding the worlds biggest
shale reserves, surged by more than five times last year to
200 million cubic meters, according to the Land and Resources
PetroChina Co.s Changning-Weiyuan and Fushun-Yongchuan
areas, along with the Fuling block operated by China Petrochemical
Corp., known as
Sinopec Group, have built new production capacity of 600
million cubic meters, the ministry said in a statement on its
website on Wednesday.
Output was about 30 million cubic meters in 2012, according
to Bao Shujing, a director at the ministrys geological
Chinas government has pledged to spur the shale
industrys development and meet rising gas demand by
prioritizing land approvals, allowing tax-free imports of
equipment and offering subsidies to explorers. The country is
pumping more than 2 million cubic meters a day of shale gas,
the National Energy Administration said.
Sinopec plans to produce 3.2 billion cubic meters from Fuling
in 2015, doubling its previous target, it said.
Oil and natural gas
output hit record
highs last year, according to the ministry. Production of
crude rose 1.8% to 210 million metric tons while conventional
gas increased 9.8% to 117.7 billion cubic meters.
PetroChina and Sinopecs output may determine if China
will reach its 2015 shale-gas
target of 6.5 billion cubic meters, said
Gordon Kwan, the regional head of oil and gas research at
Nomura Holdings in Hong Kong.
Long term, we believe the government must raise
domestic selling prices for natural gas
and increase shale-gas
subsidies further to motivate producers, he said.
That target may be hard to reach as development has been
slow, Zhang Yousheng, a researcher with the National
Development and Reform Commission, said on Oct. 16.