Sinopec's Fuling verified as China's first large shale gas play

|By:, SA News Editor

The Chinese government verifies shale gas reserves in Sinopec's (NYSE:SNP) Fuling field in the southwest of the country, with production from 29 test wells averaging 3.2M cm/day, signaling the official launch of the commercial development of China's first large shale gas field.

"Fuling proves to be a high quality marine shale gas reserve," according to the Ministry of Land and Resources, which verifies proven reserves of nearly 107B cm and adds that the gas contains as much as 98% methane, with low levels of carbon dioxide and no hydrogen sulphide.

Estimates for China's reserves easily outweigh those of the U.S., but Chinese reserves are in many cases more difficult to access than shale gas in the U.S., and China lags in the expertise needed to develop them.