Reuters quoted a company executive said on Sunday giving the country its first major commercial production of shale gas that PetroChina hopes to produce 1 billion cubic metres of shale gas in 2015 from southwest China Sichuan basin.

Mr Li Luguang head of PetroChina Sichuan subsidiary said PetroChina explorers are working on three blocks Changning, Weiyuan and Fushun-Yongchuan in Sichuan with the first two acreages totalling 6,567 square kilometres and the third one the 3,818 square kilometres block under joint study with Royal Dutch Shell.

The remark by Mr Li offers first concrete details on where Chinese firms might first pump shale gas commercially after parent company PetroChina said in August that the firm aimed for a total output of 1.5 billion cubic meters of shale gas by 2015.

When asked about the prospect of expanding cooperation with international energy firms, Mr Li said "We will first focus on executing the existing one referring to the joint study with Shell on the Fushun block.”

He said that Shell has sunk two wells in the Fushun block and are drilling another three which are expected to be completed by end of this year.

(Sourced from Reuters)