Unconventional gas will account for a larger share of China’s total gas production by 2040, but development will not proceed evenly across all types of unconventional fields, according to Wood Mackenzie. In a statement published on August 28, the consultancy said tight gas was likely to gain more momentum than shale gas and coal-bed methane (CBM) over the next two decades.
Tight gas developers have benefitted from access to more mature technologies, larger volumes of reliable geological data, and distribution synergies, it explained. By contrast, shale gas projects have suffered setbacks because of divergent geologies in different regions, while CBM faces economic, technical, and regulatory hurdles, it said.
Xueke Wang, a consultant at Wood Mackenzie, indicated that these considerations had led the consultancy to revise its gas production growth forecasts downward. “While we are positive on conventional and tight gas output, the long-term growth of CBM and shale production looks to be challenging,” she said.