CHINA aims to slash its growing dependence on gas imports by boosting domestic projects like shale fields as the security of its energy supply comes under the spotlight amid a trade dispute with the United States.

China is funding new efforts to boost domestic production, particularly from unconventional sources like shale gas, as weaning China off its import reliance takes on new importance.

According to a recent report by the National Energy Administration (NEA), China’s gas consumption will rise by about 10 percent this year to 310 billion cubic metres (bcm), and to continue growing until 2050. Though slowing from last year’s 17.5 percent, 2019’s growth still represents an annual addition of 28 bcm, faster than the annual average growth of 19 bcm during 2007-2018, the report said.

While China imposed tariffs on imports of liquefied natural gas (LNG) from the United States starting last year, it remains the world’s second-largest buyer of the super-chilled fuel.

“China’s reliance oil and gas imports is growing too rapidly, with oil topping 70 percent and gas moving towards 50 percent,” said Lin Boqiang, director of the energy economics institute at Xiamen University.

The NEA report calls for building the Sichuan basin into the country’s top gas hub due to its rich resource base in both conventional gas fields and unconventional resources, such as shale gas and “tight gas,” a low-permeability gas derived from reservoir rocks and costly to develop.

“Through expanding development of deep-reservoir gas, tight gas and shale gas, Sichuan is likely to account for about a third of the country’s total natural gas output,” the report said, up from 20 percent currently.

Shale gas in Sichuan, the key region for China’s shale gas development, could overtake conventional gas in output, the report said.(SD-Agencies)