Sinopec Group has started work on China’s first shale gas production demonstration area in Liangping county in Southwestern China’s Chongqing municipality, the Chongqing Daily reported on Wednesday.

It will have an annual output of 30,000 to 50,000 cubic meters from 2015.

According to evaluation data, Chongqing’s shale gas resources potential is 1.28 billion cubic meters, accounting for 9.49 percent of the nation’s total. Its exploitable potential is 205 million cubic meters, comprising 8.17 percent of the national total.

Chongqing’s first shale gas appraisal well, the Qianye 1 in Qianjiang, produced about 1,600 cubic meters daily up to August 12, with its highest production being 3,000 cubic meters.

Sinopec Group, Asia's largest oil refining and petrochemical enterprise, is focusing on shale gas exploitation in Chongqing, carrying out shale gas exploration in Pengshui county, Nanchuan county, Fuling county and elsewhere.

Chongqing Land Resources and Housing Administrative Bureau said shale gas evaluation work will be carried out in Chongqing to assess distribution of the resource.

“At the same time, we plan to coordinate with Sinopec and CNPC to promote exploration of shale gas,” the bureau said.