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China shale gas output to nearly double over 3 years - consultancy

From Reuters - April 16, 2018

BEIJING (Reuters) - Chinas shale gas production will likely reach 17 billion cubic meters (bcm) in 2020, nearly double the 2017 level, as local oil companies make big progress with drilling technology and cost cutting, consultancy Wood Mackenzie said in a note on Tuesday.

Nearly 700 new wells will come onstream between 2018 and 2020 at three key projects - Sinopecs Fuling, and PetroChinas Changning-Weiyuan and Zhaotong - all located in the countrys southwest, and at a total cost of $5.5 billion, Woodmac estimated.

The forecast 17 bcm of output in 2020 falls short of Beijings goal of 30 bcm, which was slashed by more than half from the governments initial target set in 2012.

That means the worlds No.3 gas user will need to keep its imports of liquefied natural gas (LNG) at elevated levels. Woodmac has separately forecast Chinas LNG imports will increase by a quarter to nearly 49 million tonnes this year, from record highs in 2017.

China produced 9 bcm of shale gas last year, or 6 percent of its total gas output.

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