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China Discovers Massive Gas Field

China Discovers Massive Gas FieldChina Discovers Massive Gas Field

China has discovered a large natural gas field in Guizhou Province in the southwest part of the country.

According to the country’s Ministry of Land and Resources’ China Geological Survey, geologists located four layers of shale gas at Anye Well 1 in Zunyi. Tests in one layer found a steady output of 100,000 cubic meters of gas per day.

The CGS said the amount of accessible gas is around 100 billion cubic meters, Oil Price reported.

It added that the reserves could meet the residential, industrial and agricultural needs of approximately 10 million people in the region.

The demand for natural gas in China saw an upswing earlier this year on the heels of price cuts for the fuel, which drew off customers for coal. The government adjusted gas prices twice in 2015 with the goal of stimulating demand for natural gas and accelerating the country's move from coal. Coal accounts for 64% of China’s energy.

Demand for natural gas led to the country increasing its first two shipments by 14% in 2015. During that year, China used 35% more gas than had been predicted by the EIA’s International Energy Outlook for 2010.

Forbes notes that gas remains the country’s fastest-growing fuel. Demand has quadrupled in the last 10 years. The country’s five-year plan calls for the replacement of coal in non-power sectors with gas and electricity.

According to Forbes, China is seeking to increase natural gas to 10% of the country’s energy portfolio.

 

Financialtribune.com