OREANDA-NEWS. March 31, 2014. China is basking in the glory of its recent world largest shale finds. With almost 25% more reserves than the United States, China is dreaming about an even bigger energy revolution than the one seen in America.

If estimates are to be believed then this 1,275 Trillion Cubic Feet of shale gas reserves found in China will last for about 300 years at the present rate of production and consumption. Since Chinese shale gas scenario is in its early years, the future is large and as of now looks promising.

The practical production currently is zero, with a couple of experimental wells producing only 10,000 meters of gas per day but nothing substantial. China shale gas reserves are spread over almost all of the country with an estimated amount of about 1275 Trillion Cubic Feet. The exploration of shale gas in China is still in its infancy. Exploration of shale gas is picking speed with companies; Shell has recently announced that the exploratory results in the Sichuan basin are satisfying. China’s enormous shale gas resource has been mainly found in the Sichuan or South China and Tarim basins, but a lot is also scattered all over the region.

The commercial viability of these reserves is a major concern. Nonetheless, they will be explored at a later stage to determine the amount of hydrocarbons present. For convenience, the reserves can be divided into four regions, North China, South China, Northwestern and Northeastern China. In these four regions, shale deposits have been found in eight basins viz. Songliao basin, Bohaiwan bay, North China, Sichuan or the South China basin, Ordos basin, Tuha Basin, Zhungaer basin and Tarim Basin. Out of these, North China, Sichuan (South China) and Tarim basins are Marine Deposits and the rest five are Continental Deposits.

The Chinese Five Year Plan of 2011 to 2015 for the development of Shale gas in the country has set a target of 6.5 Billion Cubic Meters by the end of 2015. The plan includes not just exploration and production, but also transportation and infrastructure, which China is currently struggling with. The pipeline network is insufficient to transport such huge quantities of gas and the Chinese terrain makes it even more difficult to lay any pipelines. This will require huge investment in the future. Another problem is the lack of water supply. Fracking, the shale gas extraction technology, requires large amount of water, which again means more money needs to be pumped in to ensure uninterrupted supply of water to the wells.