Significant natural gas resources exceeding 200 billion cubic metres (Bcm) have been identified in the Chaiwopu Depression of the onshore Junggar basin in China's Xinjiang region. This discovery, resulting from an oil and gas exploration campaign in the Dabancheng district of Urumqi, has the potential to form a large-scale gas development project.

Exploration and Resource Assessment

The exploration campaign covered seven blocks, including Northern Margin and Yongfeng North and South. Preliminary assessments indicate total natural gas resources of over 200 Bcm across these blocks, with the Northern Margin block alone containing more than 100 Bcm of this resource. To date, four exploration wells have been drilled on the Northern Margin, with another nearing completion. Samples from these wells have been sent for laboratory analysis to evaluate the deep oil and gas resources in the area.

Bidding Process for Exploration Rights

The Xinjiang regional government has opened the oil and gas exploration rights for the Northern Margin block for bidding. According to a notice from the Ministry of Natural Resources and the Xinjiang Department of Natural Resources, bids can be submitted by 3 December, with the bid opening scheduled for 4 December. The exploration rights will be awarded for an initial five-year term, commencing from the validity of the exploration rights certificate. Independent applicants must be registered within China and have net assets of not less than 300 million yuan ($42.46 million), and no joint ventures will be accepted.

Accelerated Exploration Efforts

Exploration activities have been accelerated since the Xinjiang Geological Bureau's Urumqi geological team began geological surveying in January 2024. The local government has since drilled 15 exploration wells across the seven blocks, of which 11 have been completed.

Strategic Importance and Potential

The identified natural gas resources in the Northern Margin's Chaiwopu Depression are seen as a potential new energy resource base for Urumqi and the wider Xinjiang region. This discovery is expected to strengthen Urumqi's role as the regional energy hub, a position that is crucial for connecting China and Central Asia. Furthermore, it is anticipated to support energy cooperation under China's Silk Road Economic Belt initiative.

This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Sharon Foo. All rights to the original text and images remain with their respective rights holders.