Implementing Green and Low-Carbon Strategy in Shale Gas Development
On 29 December 2014, Sinopec launched the ‘Sinopec Shale Gas Development Environmental, Social and Governance Report’ (“Report”). The large-scale commercial development of shale gas has triggered a revolution in the global energy industry and also raised awareness of the environmental, social and governance (ESG) aspects of shale gas development. The release of the first shale gas ESG special report in China by Sinopec, the leader in China’s shale gas exploration and development, exemplifies Sinopec’s commitment to improving industry-wide ESG standards and information disclosure.
The Report explains Sinopec’s ESG concepts and practices applied to its shale gas developments which fall under the follow four key areas: clean energy, safe operations, environmentally-friendly development and community engagement. The Report details Sinopec’s work and actions to conserve water, reduce carbon emissions, monitor and mitigate environmental impacts, openly communicate with local communities and ensure balanced development. In particular, the Report details efforts to recycle water during the development process and the series of technologies employed to protect underground water during exploration. As the leader in shale gas development in China, the Report also demonstrates Sinopec’s leadership in responsibly implementing a green and low-carbon shale gas strategy and promoting ecological conservation.
Jiao Fangzheng, Vice President of Sinopec Corp., said, “Sinopec, as the leader in shale gas exploration and development in China and a lead member of the United Nations Global Compact, considers the development of shale gas a crucial initiative to support the implementation of green and low-carbon strategy. Our decision to implement a green and low-carbon approach to shale gas development will play a significant role in optimizing China’s energy structure, building a harmonious society and promoting sustainable development.
As of 22 December 2014, 75 test wells at Sinopec’s Fuling shale gas field have been completed which means the new production capacity target of 2 billion cubic meters has been achieved ahead of schedule. At present, the Fuling shale gas field has cumulatively produced over 1.136 billion cubic meters of shale gas and maintains an average daily output of over 3.6 million cubic meters, with Chongqing the first beneficiary of green, low-carbon shale gas in China. As shale gas undergoes larger scale development, China will enjoy greater self-sufficiency in natural gas production and its energy structure will be further optimized.