Chinese energy group PetroChina aims to meet a third of China's shale gas target by 2020 and plans to build 10 bcm of shale gas production capacity in the Sichuan province by this date.
The company produced 2.3 bcm of shale gas in the Sichuan province last year, mainly from 120 production wells in the Changning-Weiyuan area. The company plans to drill 110 wells in 2017, to reach 600 wells by 2020.
Its domestic competitor Sinopec, which holds 381 bcm of proven shale gas reserves in its Fuling shale gas project in Chongqing, also plans to reach a production capacity of 10 bcm/year by 2020.
China claims to have the largest recoverable shale gas resources in the world. The country is seeking to replicate the US shale gas boom and to turn into a net gas exporter as the United States. However, more complex geology and scarce water resources significantly raise production costs, hindering the development of the domestic shale gas industry.