Coal-rich Chinese province eyes shale gas exploitation

North China's Shanxi is considering mass exploitation of shale gas reserves as the province, the country's largest coal producer, is facing pollution pressure.

After more than two years of surveying, geologists estimated that the province has a shale gas reserve of 4.44 trillion cubic meters, an official with the provincial land and resources department said Friday.

Further study will be carried out to select sites for commercial exploration of the new energy source, said the official.

The survey was conducted by Shanxi Coal Geological Bureau and two local energy companies starting in July 2013.

The basins of Erdos and Qinshui are rich in shale gas, and the thickness and high content of organic carbon and brittle minerals are suitable for exploration, the survey has found.

"Exploration of shale gas will help reduce the dependence on coal and cut carbon dioxide emissions," said the official.

The province started drilling the first shale gas exploration well in Xixian County in October 2013.

China has about 26 trillion cubic meters of shale gas reserves, the largest in the world. While regular natural gas is extracted from sedimentary rocks, shale gas, mainly methane, comes from delicate shale formations.

Known as the "sea of coal," Shanxi has produced more than 14 billion tonnes of coal over the past six decades, a quarter of the country's total output. However, its coal industry lost 9.4 billion yuan (1.4 billion U.S. dollars) last year due to economic slowdown and transforming energy structure. Endi