14 DAY TRIAL // Sinopec Limited, otherwise known as China Petroleum and Chemical Corporation, has some really big plans for the future. The Beijing-based company wants to exploit the Fuling shale gas field in China and see to it that this region reaches an annual production capacity of 10 billion cubic meters by 2017.
As explained by specialists, shale gas is natural gas trapped inside shale formations, i.e. sedimentary rock made from clay minerals and small fragments of other minerals.
The Chinese oil and gas company estimates that, all in all, the Fuling shale gas field, which sits in Chongqing in Southwest China, holds gas reserves amounting to 2.1 trillion cubic meters, Green Car Congress informs.
China Petroleum and Chemical Corporation expects that, by the end of 2014, this shale gas field will hit an annual production capacity of 1.8 billion cubic meters. By 2015, it should sport a capacity of 5 billion cubic meters, and, two years later, the goal of 10 billion cubic meters should be reached.
The same source tells us that, when exploited according to Sinopec Limited's plans, Fuling will be the first large-scale shale gas field to have ever become operational in China.
“The discovery and construction of Fuling shale gas field, China's first-ever large-scale shale gas field, symbolizes a significant strategic breakthrough in shale gas development in China,” the current Chairman of Sinopec Limited, Fu Chengyu, explained in a statement.
When compared to coal, shale gas has been documented to release less greenhouse gas emissions or other harmful compounds. Hence, it is argued to be a cleaner energy source. Given the fact that China is currently dealing with a major air pollution crisis, it is believed that exploiting said field will yield noteworthy benefits.
Specifically, it is estimated that, once its annual production capacity reaches 10 billion cubic meters per year, the Fuling shale gas field will reduce yearly carbon dioxide, sulfur dioxide, and nitric oxide emissions by 12 million tons, 300,000 tons and 100,000 tons, respectively.
“Given China’s abundant shale gas resources, we believe this will significantly support and accelerate the implementation of China’s shale gas strategy, increasing the supply of green energy and optimizing the energy consumption structure in China. It will also deliver benefits to energy conservation, emission reduction and air pollution control,” Fu Chengyu explained.
To put things into perspective, it must be said that natural gas presently accounts for just 5.5% of China's primary energy consumption. By comparison, the world average is one of 24%. What's more, 30% of the natural gas China used in 2013 came from overseas.