China shale gas output rises as government aims to improve energy structure

Shale gas production in China rose sharply in 2015, giving a powerful boost to the commercial exploitation of the fuel, Chinese media quoted an official as saying.

There was also a great breakthrough in China’s shale gas exploration during the 12th Five-Year Plan period (2011-15), with cumulative new proven reserves of 544.13 billion cubic meters, Global Times quoted Yu Haifeng, director of the department of mineral resources reserves under the Ministry of Land and Resources, as telling a press conference.

The output of shale gas soared 258.5 percent to 4.47 billion cubic meters in 2015, Yu said. “China’s total shale gas output has reached 5.72 billion cubic meters since 2014, when the commercial exploitation of shale gas began,” he said.

Oil giants such as China Petroleum and Chemical Corp and PetroChina Co have begun exploration for the fuel in the southwestern regions of China and they made major strides, news portal ce.cn reported.

Shale gas production was included as a national strategic emerging industry in 2013, according to an announcement on the website of the National Energy Administration.

China’s shale gas exploration companies can get State subsidies of 0.3 yuan ($0.05) per cubic meter from 2016 to 2018, and 0.2 yuan per cubic meter from 2019 to 2020, according to the Ministry of Finance

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