China is investing billions of dollars in shale gas exploration and production in an attempt to double its shale gas production levels in the coming years.
According to a report by the Wall Street Journal, Sinopec is aiming to double its shale gas production levels inside of five years.
China has enormous shale oil reserves but faces a number of key challenges, such as challenging geology and insufficient infrastructure in its existing gas producing units. These challenges will need to be overcome if Sinopec is to succeed in doubling the country’s production levels.
China is already the sixth largest producer of shale gas in the world, producing around 112 billion cubic metres of natural gas in 2014.
China is a huge consumer of gas and its plans to dramatically increase its own production levels would see the amount of gas it needs to import from other producers plummet.