Chinese oil and gas enterprise Sinopec has completed the first phase of a new shale gas field in south-western Sichuan province amid an increase in demand in the winter season, Reuters reported.
The work to deliver the first phase of the Weirong field, located in Neijiang and Zigong cities, commenced in late 2019. It has an annual production capacity of one billion cubic metres (bcm) of natural gas.
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The company now plans to advance with the second phase of development that will increase production capacity to three billion cubic metres, which can meet the annual fuel consumption of 16 million households.
Currently, the field is producing around 3.5 million cubic metres of gas per day.
The deep shale gas field has proven reserves of 124.7bcm, which makes it Sinopec’s second major shale gas development after Fuling, also located in the same Sichuan basin.
During the first phase, Sinopec drilled 56 wells attached to eight drilling platforms, the news agency added.
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By GlobalDataSinopec is Asia’s biggest oil refiner and is headquartered in Chaoyang District, Beijing. Sinopec Group is the largest shareholder of the company.
Last month, another Chinese firm, PetroChina, discovered a large gas reservoir in the Xinjiang Uygur Autonomous Region.
The discovery hosts more than 100bcm of gas over an area of around 156 million square metres at the southern rim of the Junggar Basin. It is expected to produce around 610,000m³ of natural gas and 106.3m³ of crude oil a day.
