What is the significance of Sinopec's and PetroChina's recent ultra-deep shale gas discoveries in the Ziyang region of the Sichuan basin?

Sinopec and PetroChina have made breakthrough discoveries in the ultra-deep Qiongzhusi Cambrian formation—buried around 4,500–5,000 meters deep—in Ziyang, eastern Sichuan basin, booking a combined ~236 bcm of proven reserves; this marks China’s first successful commercial-scale entry into multi-layered, ultra-deep (among the world’s deepest) shale gas plays, targeting thicker, premium-quality formations that could significantly boost domestic shale output despite higher engineering and cost challenges.

How does China's current shale gas production compare to its official targets, and what role do ultra-deep plays like Qiongzhusi play in closing the gap?

China’s shale gas output reached only ~27 bcm in 2025—well below its 2030 target of 80–100 bcm—and accounts for just 10% of national gas production; analysts project ultra-deep developments like Qiongzhusi could lift shale output by nearly half—from 27 bcm to ~40 bcm by 2035—contributing up to 13% of total forecast gas production and helping curb costly LNG imports and improve leverage in pipeline gas negotiations with Russia and Turkmenistan.

China taps ultra-deep Sichuan shale in push to boost gas output

Jun 16, 2026

Sinopec and PetroChina are accelerating ultra-deep shale gas drilling in China's Sichuan basin, targeting a one-third output increase by 2035 to reduce import reliance despite higher operational costs.

reuters

2026-06-16

China taps ultra-deep Sichuan shale in push to boost gas output

2026-09-02

China maintains stable refined fuel exports under relaxed controls, sources say

China taps ultra-deep Sichuan shale in push to boost gas output

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