The China Petroleum & Chemical Corporation, or Sinopec, said it plans to develop a new field in the town of Weirong in Sichuan province, which is able to produce 1 billion cubic meters of shale gas per year and with a proven reserve of 124.7 billion cubic meters.

The discovery of shale gas reserves in Weirong is the second major find after a flagship development at Fuling in Chongqing, which is situated in the same geological basin of Sichuan, reported, citing information provided by the company.

Sinopec is drilling for shale gas in a 20,000 square-kilometre area in southern Sichuan province and western Chongqing region. As of 2018, the total proven reserves of shale gas in the region is 124.7 billion cubic meters. The company had earlier set a target to produce 10 billion cubic meters per year of shale gas by 2020.

In addition, the company said the well Dongye-1, located in the Dingshan-Dongxi block near Chongqing, has a reported daily output of 310,000 cubic meters in test production. The well that brings high volumes of gas flows extended about 4,200 meters below ground level, representing a distinctive breakthrough.