Abstract
Energy supply-demand contradiction and air pollution become thorny problems in China, great efforts have been made to develop shale gas and coal-based synthetic natural gas (SNG) as optimal energy suppliers. However, how to trade off and balance shale gas and SNG industries become a great concern. This paper comprehensively compares shale gas and SNG via techno-economic analysis and life cycle assessment. Techno-economic analysis indicates that only a small part of shale gas projects with shallow burial depth and low drilling & completion (D&C) costs are now in the black. SNG in Xinjiang and Inner Mongolia has large profit space, but other regions exhibit a poor economic performance. Furthermore, cradle-to-gate life cycle greenhouse gas (GHG) emissions and water consumption of shale gas are 19.1 gCO2-eq/MJ and 38.8 g/MJ, which are much lower than those of SNG, 162.2 gCO2-eq/MJ and 343.6 g/MJ. Shale gas and SNG should be parallel development currently considering strategic and environmental needs. Taking domestic demand, technical innovation, environmental control, and policy support into further consideration, shale gas will outperform SNG in the long run. China should give strong supports to shale gas, slow down the expansion speed of SNG gradually until phase out its production capacity.
Published Version
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