Monthly Crude Oil and Natural Gas Production
With Data through July 2024 | Release Date: September 30, 2024 | Next Release Date: October 31, 2024
China is a major natural gas importer by pipeline and the world’s largest importer of liquefied natural gas (LNG). In the last 10 years, the Chinese government has actively supported the development of unconventional natural gas resources to reduce import dependence and enhance energy security.
According to a report from S&P Global Commodity Insights (SPGCI), the China National Petroleum Corporation (CNPC) in 2023 produced natural gas from shale in the Low Cambrian formation in the Sichuan Basin at a depth exceeding 14,760 feet, marking the first time that commercially viable natural gas was produced from this deeper formation. SPGCI reported that the Zi 201 well initially produced 26.1 million cubic feet per day (MMcf/d), a commercial rate that could signify the entry of the Cambrian formation into a new phase of large-scale shale gas development.
Currently, only two of China’s national oil companies—CNPC and the China Petroleum and Chemical Corporation (Sinopec)—produce shale gas, mainly from the existing fields in the Silurian Longmaxi formation of the Sichuan Basin. At an average depth of 11,500 feet, the Silurian Longmaxi shale formation is shallower than the Low Cambrian.
China’s domestic shale gas production averaged 2.51 billion cubic feet per day (Bcf/d) in 2023, up from 0.02 Bcf/d in 2013, according to data compiled by SPGCI. Since 2013, Chinese companies have gained a greater geological understanding of shale formations and deployed more advanced hydraulic and automation techniques, steadily growing shale gas production. However, we estimate that shale gas accounted for just 12% of China’s domestic natural gas production of 21.7 Bcf/d in 2023 as geological and cost issues have hampered more rapid development. In 2023, China’s natural gas imports averaged 16.0 Bcf/d and accounted for 42% of China’s total natural gas supply, compared with 15% of its supply in 2010. Information Source: Read Press Release
