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Shale Gas Large-Scale Production Expected to be Realized in Sichuan Next Year

Source:Finance and Investment Date:Sep 28,2015 Clicks:791

Shale gas in China has abundant resources, wide exploration area, huge development potential and broad prospect. Development of shale gas will play an important role in promoting energy conservation & emission reduction, and improving energy security.

From September 23-25, interview of CNPC Sichuan Changning-Weiyuan National Shale Gas Industrial Demonstration Area was performed smoothly. It was known by journalist that CNPC Southwest Oil & Gas Company was responsible for exploration and development of shale gas in Sichuan. Till September 20, Southwest Oil & Gas Company developed 66 gas recovery wells with testing production as 6.9242 million m³/day, and 71 production test wells with production of shale gas as 0.801 billion m³ in total. Based on the CNPC Sichuan Shale Gas Development Plan, several shale gas production areas are to be built in 2016 to initially realize large-scale production.

Huge Exploration and Development Potential

Sichuan is regarded as an important part of shale gas development area in China. Shale gas resources of the favorable area above 4000m of Longmaxi Formation, as one of the 9 shale gas mining right areas of CNPC Southwest Oil & Gas Company, is estimated at 5.18 trillion m³, which has enormous exploration and development potential.

CNPC pays a high attention to shale gas. CNPC Southwest Oil & Gas Company promotes exploration and development of shale gas smoothly based on the principles of “resources ascertaining, production assessment, technical difficulty overcoming, development with benefits”. Till September 20, wells of drilling amount to 167, wells of completion amount to 144, and completed wells amount to 67. Gas recovery wells of 66 were developed with testing production as 6.9242 million m³/day, and 71 production testing wells were developed with shale gas as 0.801 billion m³ in total.

It is worth mentioning that Southwest Oil & Gas Company started following exploration and development results of North American shale gas since the time of “Eleventh Five-year Plan” and actively promoted development of shale gas in Sichuan, acquiring important phased achievement of shale gas exploration & development and being the first place on several aspects.

Shale Gas Development Plan

In December, 2013, CNPC and local non-oil-and-gas state-owned enterprises jointly set up Sichuan Changning Natural Gas Co., Ltd., to explore and develop the shale gas of Changning Block in Changning-Weiyuan National-level shale gas industrial demonstration zone, taking the lead in forming the mode of central enterprise and local enterprise jointly exploring and developing shale gas. Till September 20, Sichuan Changning Natural Gas Co., Ltd. has completed 9 assessment wells and 8 gas recovery wells, with daily testing production as 221.1 thousand m³; 60 wells of drilling, 42 wells of completion, 23 wells of fracturing and 23 wells of gas recovery; 23 production testing wells, with daily gas production as 2.4363 million m³ and total production of shale gas as 0.463 billion m³; dehydrating station and outward pipeline were constructed and put into production with design dehydrating capacity as 3 million m³/day, gas transportation of outward pipeline as 4.5 million m³/day, and internal gathering & water supply system were also built and put into production.

From the main results of Sichuan shale gas exploration & development, it can be seen that the Southwest Oil & Gas company made important progress in exploration & development through combining research with on-site experiments and combining independent development with introducing absorption; main technology of shale gas exploration and development was preliminarily developed; technology was optimized and works quality & efficiency were improved; geological study was deepened, the most favorable target location was locked onto; geological and fracturing design was optimized, significantly improving the single well production; safe and clean production was realized.

Moreover, the Southwest Oil & Gas Company initially made Sichuan shale gas development plan. On the basis of Sichuan shale gas resource potential investigation and evaluation, shale gas prospective areas and favorable target areas would be selected; in 2016, evaluation on favorable areas would be deepened, several shale gas production areas would be built, and large-scale production would be preliminarily realized; from 2017 to 2019, large-scale production would be realized on the whole; in 2020, shale gas evaluation system and exploration mode would be strived to be established & improved, independent production of main equipment would be realized, series of shale gas technical standards & specifications would be formed, complete shale gas industry policy system would be established, shale gas factory production mode would be completed, drilling, fracturing, microseismic monitoring technology would be mature, and development equipment would be produced domestically.