PetroChina beats shale forecasts

China

BEIJING, January 4, 2017 – Production figures for PetroChina’s Changning-Weiyuan block were announced by parent company CNPC on Tuesday, in excess of originally forecasted levels.

Annual shale gas produced at the asset was originally predicted to reach 1.5 bcm (53 bcf). Instead, the company reported output figures of 2.3 bcm (81.2 bcf) for the year. With PetroChina’s total annual shale gas production reported as 2.5 bcm (88.3 bcf), the Changning-Weiyuan asset accounted for the vast majority of the company’s shale gas output.

Originally discovered in 2015, the Weiyuan shale-gas find is an integral part of China’s desire to feature natural gas more prominently in its energy mix. The discovery is part of the Sichuan block find and is expected to produce between 5-8 bcm (177-282 bcf) per year by 2020, with one third of that quantity originating from the company’s shale gas initiatives.