On September 2nd, a reporter from the media learned from the Public Affairs Department of Shell (China) Co., Ltd. that Jilin Guangzheng Mining Co., Ltd. and Shell have recently signed a cooperation agreement in Changchun, aiming to jointly explore and develop oil shale resources in Jilin Province.
Under the terms of the agreement, both companies will establish a joint venture called Jilin Shell Oil Shale Development Co., Ltd. Shell will hold 61% of the shares, while Jilin Guangzheng will own 39%. The new company will focus on assessing the commercial viability of oil shale in the region and will apply Shell's patented underground conversion technology for industrial demonstration. The long-term objective is to produce clean and high-quality transportation fuels from oil shale, as well as other energy products for commercial use.
According to optimistic estimates from relevant authorities, based on current international oil prices, the annual value of shale oil production in Jilin could reach 9.6 billion yuan. If this crude oil is further refined into gasoline, the total annual output value could exceed 20 billion yuan.
Oil shale is considered an important alternative to traditional oil and gas resources. It is a type of fossil fuel, with Jilin Province holding vast reserves. According to official data, the province has predicted oil shale resources of 254.29 billion tons, with proven reserves of 17.426 billion tons—accounting for about 54% of China's total and ranking first nationwide. Based on the average oil content, the proven reserves could yield approximately 1 billion tons of shale oil, which could last for over 100 years.
Oil shale is a high-ash, combustible organic rock formed by the accumulation and transformation of ancient plant and animal matter. It is commonly found in sedimentary basins. Due to its formation process being similar to that of oil, it contains substances resembling petroleum, making it a potential source of alternative energy.
It is worth noting that Shell is currently the only company worldwide that has mastered the technology for oil shale extraction using underground pyrolysis and heating methods. The company has successfully implemented this technology in the United States and Canada.
Jilin Guangzheng Mining Co., Ltd. is a state-owned enterprise with a registered capital of 2.1 billion yuan. A company representative stated that they recognize the significant potential of oil shale to support China’s economic growth. They are excited about the collaboration with Shell and are confident in the company’s technological capabilities. They hope the project will move quickly toward commercial production.
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