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China's CNPC Eyes 500 Mcm Shale Gas Output By 2015

Date: 06-Jul-10
Country: CHINA
Author: Jim Bai and Tom Miles

State-owned China National Petroleum Corporation (CNPC) aims to produce 500 million cubic metres (mcm) of shale gas by 2015, a company executive said in an article published on Sunday.

China does not have any shale gas production and evaluation of the potential resources is only at a preliminary stage, Deputy General Manager Liao Yongyuan said.

The largest oil and gas producer in China will also focus on developing ethanol that comes from non-grain crops and raise its ethanol supply capacity, including both production and imports, to 3 million tonnes a year by 2015, Liao said in the Study Times, a Communist Party newspaper.

The world's second largest oil user blended mostly grain-made ethanol into gasoline but in 2007 it ruled that new ethanol plants should not use grain crops as feedstock amid food security concerns.

CNPC will import 80 billion cubic metres (bcm) of natural gas a year by 2015 while actively building state commercial gas reserves as well as its own operational gas reserves, Liao said.

China imported about 7.6 bcm of gas in the form of liquefied natural gas (LNG) via three major receiving terminals in 2009 and shipped in over 1.5 bcm of gas from central Asia in the first half of this year via China's first cross-border pipeline, operated by CNPC.

The line will pump up to 40 bcm of gas to China by 2012-13 when CNPC is also expected to start operating China's second cross-border gas line linking Myanmar that has designed shipping capacity of 12 bcm per year.

CNPC plans to start operating its first two LNG receiving terminals in April 2011 via its listed arm PetroChina.

(Editing by Sugita Katyal)

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