Chongqing's "Page 1 Well," a key site in the city’s shale gas exploration efforts, has reportedly been sealed after the completion of its well-sealing project. This information was officially confirmed by local authorities on October 17. The well, known as "Zhangpu 1 Well," became a symbol of Chongqing’s push into shale gas development when it was drilled on October 24, 2011. During a test ignition in 2012, the well burned continuously for four hours, producing an impressive flow rate of 308 cubic meters per hour, marking a major milestone in the region’s energy strategy.
However, recent developments have raised concerns. Two industry insiders familiar with the project suggested that funding shortages are likely behind the closure. They pointed out that transporting the gas requires significant investment—whether through pipeline construction or liquefaction facilities. Each additional horizontal well could cost around 70 million yuan, making long-term operations financially challenging. According to them, the main obstacle isn’t technology but policy and financial support.
Sinopec, one of the major players in the sector, confirmed similar challenges. Although the Jiaolin 1 Well in Fuling successfully produced commercial shale gas in early 2013, the company has yet to receive the promised 4 yuan per cubic meter subsidy. This lack of financial backing has made it harder to sustain operations.
On the other hand, Li Dahua, dean of the Chongqing Institute of Geology, disputes the idea of a funding crisis. He explained that "Song 1 Well" was an evaluation well, and all necessary data has already been collected. Sealing the well doesn't mean it will be abandoned forever; it’s just a temporary measure.
Despite these differing views, Chongqing’s shale gas industry has long struggled with financial constraints. In 2023, Chongqing Energy Group partnered with Huaneng Power International, allowing the latter to acquire a 65% stake in Chongqing Minerals Co., Ltd. While the move was framed as a strategic decision to strengthen technical capabilities and manage risks, some analysts believe it may also reflect a need for external capital.
The collaboration has led to a division of focus: Huaneng will concentrate on the Xiangyang East Block, while Chongqing Energy Group will prioritize the Qianjiang Block. This shift aligns with the city’s broader goal of becoming a national hub for shale gas production, aiming to address its growing energy demands.
With estimated shale gas reserves reaching 12.75 trillion cubic meters, and exploitable resources between 2.5 and 3 trillion cubic meters—accounting for about 10% of China’s total—Chongqing holds significant potential. However, despite its natural gas production, the city still faces a supply gap due to rising consumption. Since 2002, gas shortages have persisted, and the gap is expected to widen in the coming years.
Experts like Cheng Peng from Conil China Enterprise Management Consulting suggest that national support is crucial for the long-term success of shale gas. “Shale gas development should be seen not only as an economic opportunity but also as a strategic move for energy security,†he said. “Subsidies, whether direct or indirect, could help reduce costs and encourage more companies to invest.â€
Led Color String Light,Twinkly Led String Light,Colorful Led String Lights,Led String Lights Outdoor
Tianjin Jinji Optoelectronic Technology Co., Ltd. , https://www.tjjjgd.com