China Sinopec Corporation has discovered shale natural gas reserves in southwestern Sichuan Basin with geological reserves of 387.8 billion cubic meters and daily gas flow of 258,600 cubic meters, the company said on Tuesday.

The discovery will support the construction of a natural gas base in the region. It also marks the county's breakthrough in Cambrian Qiongzhusi Formation shale gas exploration, said the company.

Cambrian Qiongzhusi Formation is one of the two main marine shale strata in the Sichuan Basin and also the most favorable targets for shale gas exploration, according to the company.   

"The discovery is of great significance. It provides support for large-scale shale gas exploration from a single layer of the Longmaxi Formation to a new one," said Guo Tonglou, executive director of the Sinopec Southwest China Petroleum Bureau Co. Ltd.

Sinopec completed building the first phase of a new shale gas field, Weirong, in Sichuan Province in January 2021, with proven reserves of 124.7 billion cubic meters, according a report by Xinhua. The gas field had an annual production capacity of 1 billion cubic meters of natural gas.