The Chinese oil and gas company Sinopec has started to build a shale gas research base close to the Fuling shale project, a large commercial discovery located near Chongqing. The Fuling discovery is China's largest shale gas producing asset with a current output of around 5 bcm/year. The investment will amount to US$49m.
In late 2015, Sinopec nearly tripled the size of proven reserves at its Fuling shale gas project. The proven reserves of the Jiaoshiba block were estimated at 274 bcm, raising total proven reserves at Fuling to 381 bcm, which gives the project the potential to reach a production capacity of 10 bcm/year by the end of 2017.
China is seeking to replicate the US shale gas boom and to turn into a net gas exporter as the United States. However, small scale developments by only few state energy companies and more complex geology have led to only a few commercial discoveries.