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The discovery raises hope for a breakthrough in China’s shale development.
According to China’s Ministry of Land and Resources, the gas well is the deepest so far in the country, located at a depth of 4,417 meters.
The Ministry which is in charge of resource registrations and mining rights says the exploration marks a technological breakthrough in China’s deep shale gas drilling.
China is believed to hold the world’s largest resource of shale gas but faces huge technological challenges in production. China has 25.08 trillion cubic metres of potentially recoverable shale gas resource, according to official data.
The new gas well, Dingye-2HF, is situated in Xishui County of Guizhou Province.
The Dingye-2HF gas well is expected to have an average daily output of 43,000 cubic meters, according to the ministry.
According to the national shale gas plan for 2011-2015, China aims to produce 6.5 billion cubic meters of shale gas annually by 2015. Beijing had in October 2013 unveiled a five-year plan for its emerging shale gas industry.
In June 2011, the Ministry of Land Resources (MLR) issued China’s first shale gas tender targeting six domestic firms.
Industry estimates show close to 150 wells were drilled by the end of 2013, mainly by PetroChina, Sinopec, Yanchang Petroleum and Royal Dutch Shell.
Chinese experts have said the government has not supported the industry by implementing the right policies.
The government’s output volume-based subsidy programme has been criticised as ineffective.