China's Sinopec strikes new shale gas in Sichuan basin

Reuters02-19

SINGAPORE, Feb 19 (Reuters) - China's Sinopec Corp

said on Monday it had produced 204,500 cubic metres of gas a day in a new exploration shale gas well in southwest China's Sichuan basin, potentially adding sizeable proven reserves to a recently discovered field.

The drilling of the Dingye-11 well, located in the shallower reservoir at the rim of the Sichuan basin previously deemed uneconomic to develop, came following research and development on the rock formations of the gas-rich basin, Sinopec said.

This would boost the reserve base of the Qijiang gas field, where Sinopec in late 2022 reported 146 billion cubic metres (bcm) of proven reserves certified by China's ministry of natural resources.

Under President Xi Jinping's call to boost domestic energy supply, China's national energy champions are accelerating the development of more costly, geologically challenging oil and gas resources.

Technologies such as horizontal drilling and hydraulic fracturing are widely applied to produce gas from shale and other tight rock formations.

(Reporting by Chen Aizhu; Editing by Sharon Singleton)

((aizhu.chen@thomsonreuters.com; Reuters Messaging: aizhu.chen.reuters.com@reuters.net))

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