Shell's total production of natural gas in China last year rose 25.2% from 2012 to 164,000 Mcf/d, the company indicated in its annual report released Thursday.
Output was, however, still lower than in previous years -- 174,000 Mcf/d in 2011 and 253,000 Mcf/d in 2010.
All of Shell's current gas production comes from the Changbei tight gas onshore field in the northern Shaanxi province. It operates the project with a 49% stake, while state-owned China National Petroleum Corp. owns the remaining 51%.
The field started commercial production in March 2007 and has an annual production capacity of 3.3 billion cubic meters (319,151 Mcf/d). Last year Shell said it was embarking on the second phase of development and this is expected to increase output from as early as the end of this year.
Elsewhere in Asia, the company's Malaysian gas production rose 14.5% year on year in 2013 to 655,000 Mcf/d while its liquids output in the country edged up to 42,000 b/d last year, from 41,000 b/d in 2012, Shell said. Shell has stakes in 19 exploration and production blocks offshore Sabah and Sarawak in Malaysia, with interests ranging from 20% to 85%. It operates 17 gas fields offshore Sarawak alone, where nearly all its production is supplied to state-owned Petronas' Malaysia LNG in Bintulu.
Offshore Sabah, the company operates the Gumusut-Kakap oil field, which is slated to start up in the second quarter of this year. It is also currently developing the nearby deepwater Malikai prospect.
Shell's total gas output from Brunei in 2013 fell 10.8% from a year earlier to 502,000 Mcf/d, according to the report. Shell is a 50% shareholder in the Brunei Shell Petroleum venture alongside the government. Shell also has a 35% stake in the Maharaja Lela gas field. Almost all the output is sent to the Brunei LNG liquefaction facility.
