Sinopec Group has started work on China's first shale gas production demonstration area in Liangping county in Southwestern China's Chongqing municipality, the Chongqing Daily reported on Wednesday.

The area is expected to have an annual output of 30,000 to 50,000 cubic meters from 2015. According to evaluation data, Chongqing's shale gas resources potential is 1.28 billion cubic meters, accounting for 9.49 percent of the nation's total. Its exploitable potential is 205 million cu m, comprising 8.17 percent of the national total.

Chongqing's first shale gas appraisal well, the Qianye 1 in Qianjiang, produced about 1,600 cu m daily up to Aug 12, with its highest production being 3,000 cu m.

Sinopec, Asia's largest oil refining and petrochemical company, is also carrying out shale gas exploration in Pengshui county, Nanchuan county, Fuling county and elsewhere.