Oil   Gas  

China Speeds Up Oil and Gas Drilling

China’s Sinopec and CNPC are speeding up drilling and exploration from major shale oil and gas formations in the country’s western regions to boost domestic output, according to company reports on Monday.

New exploration in shale gas, tight oil and tight gas will lead to growth in output for the country’s largest oil and gas producer, China National Petroleum Corporation, the firm’s official newspaper reported on Monday, citing an internal conference from its upstream services unit, Reuters reported. 

The drilling cycle at the Mahu field in Xinjiang, one of CNPC’s largest findings in recent years, fell 40% from a year ago, CNPC said, implying that oil wells are being completed and produced at a faster rate. 

Despite having large domestic oil and gas reserves, China has become the world’s biggest importer of crude oil, and this year it is also expected to overtake Japan as the top buyer of liquefied natural gas. LNG shipments cost China around $25 billion in October alone, according to Reuters calculations. 

CNPC this year increased spending in its upstream sector after a government call to safeguard China’s energy security by increasing domestic output. 

Sinopec said on Monday it planned to tap 66 new natural gas wells and install 23 gas drilling stations over winter to increase supplies from its fields in southwestern China, the company said in its official newspaper. 

China needs more gas because it is in the midst of a gasification push that is moving millions of households and factories from coal-fired power and heating to gas. 

The aggressive gasification targets and an unusually cold winter last year caused a supply shortage. 

To prevent a repeat, Chinese companies have this year increased spending on domestic production and filled up storage tanks ahead of winter.

News No: 2506
Date: 2018/11/06 - 10:38
News Source: Financial Tribune

China  Oil  Gas  CNPC  Sinopec 


Leave a Comment:


Copper price falls after Chinese economic growth hits 28-year low

The copper price came under renewed pressure on Monday after headline figures showed a slowdown in the Chinese economy to annual rates of growth not seen in nearly three decades.

Pakistan to Face Energy Crisis without Iran’s Gas

Pakistani policymakers have reached the conclusion that the country will face serious energy problems in 2020s without Iran’s gas supply.

Japan Refiners Load Iran Crude

Fuji Oil, jointly with Showa Shell, has loaded the first Iranian crude oil cargo being lifted by Japanese refiners since the country won a 180-day waiver from the US to import oil from Iran, a Fuji Oil official told S&P Global Platts Monday.

Brent, WTI Prices Fall

Oil prices fell on Monday, in line with weaker stock markets after evidence that economic growth in China, the world’s second largest crude consumer, eased in 2018.

CBI Governor: Japan Restarts Oil Imports from Iran

Governor of the Central Bank of Iran (CBI) Abdolnasser Hemmati announced on Monday that Japan has resumed supply of crude from Iran.

Iran to Sell Oil via Stock Exchange for 3rd Time

The third stage of a plan to sell Iranian oil through the stock exchange will kick off this week, the oil minister said.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners