PetroChina announced it aims to produce 30 billion cubic metres (1.06 trillion cubic feet) of coal rock gas by 2035, exceeding last year's record shale gas output, which accounted for 10% of China's gas production in 2023 [1, 2]. Coal rock gas (CRG) is currently produced commercially only in China and requires specialized techniques such as horizontal drilling and fracking [1, 2].
The majority of coal rock gas reserves lie within the Ordos Basin, which spans three provinces in China [1, 2]. PetroChina’s push to develop CRG supports China’s broader goal to diversify its energy mix and reduce reliance on imported liquefied natural gas (LNG), which carries cost and geopolitical risks [1, 2].
China ranks as the world’s third-largest gas consumer, with current annual consumption at around 430 billion cubic metres. This figure is expected to peak at 600 to 650 billion cubic metres around 2040, driven by continued industrial growth and electrification efforts [1, 2]. Developing coal rock gas could account for more than half of the anticipated increase in China’s gas output, according to analysts [1, 2].
Huang Tianshi, principal gas analyst at S&P Global Energy, said, "CRG currently offers stronger growth potential than alternative domestic gas sources," highlighting the resource’s strategic importance [1, 2].
China’s energy strategy also aims to insulate itself from disruptions such as those caused by the Iran war and other geopolitical events by massively electrifying its vehicle fleet [1, 2]. Increasing domestic gas production strengthens China's negotiating position with pipeline suppliers like Russia, particularly regarding new projects such as the potential Power of Siberia 2 pipeline [1, 2].
PetroChina’s target production milestone is set for 2035, signaling a major expansion in coal rock gas output over the next decade [1, 2].
