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Petrochina will ramp up investments to bolster oil and gas output (China)

Chinese state-run oil and gas company Petrochina has announced plans to invest about CNY300bn (approximately US$45bn) in 2019, up 17% from 2018, in an attempt to ramp up oil and gas production and boost its reserves to cope with the rising domestic demand. The group expects its 2019 crude oil production to reach 906 mbl and its gas production to rise to 3,811 bcf (108 bcm), i.e. around 1,540 mboe. Petrochina's crude oil processing output will increase by more than 4% to 1,170 mbl in 2019. Petrochina is also focusing on the development of shale gas projects and produced 4.3 bcm of shale gas in the Sichuan province (+40% on 2017).



Chinese shale gas production is increasing and the National Development and Reform Commission (NDRC) removed restricted items for foreign investment in the domestic oil and gas sector in July 2017. In order to reduce its dependence on LNG imports, the government is also considering extending subsidies for unconventional gas projects for the 14th five-year plan period (2021-2025). The current 2020 shale gas production targets are set at 30 bcm/year, which is an ambitious objective compared with the current output of 10 bcm/year.

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