The Dagang Oilfield had been previously identified as one of the oilfields being eyed for geothermal development under the renewables strategy announced by PetroChina, the listed arm of Sinopec. The company estimates that they can develop geothermal resources of up to 1.6 billion tonnes of coal equivalent within their 15 oilfields.
The projects are part of the “New Energy Business Cooperation Agreement” signed between the two counties earlier this year that seeks to establish cooperation in the establishment of pilot projects for clean energy, such as geothermal heating and waste heat utilization. Ultimately, the goal is to develop clean energy to replace coal and gas heating.
Upon signing the agreement, research groups at the Dagang Oilfield immediately established a special research team to sort out geothermal geologic data and address the three major geological difficulties relevant to the project, namely complex regionals structures, rapid changes in heat reserves, and unclear resource sizes.
Geothermal development at the Dagang Oilfield is considered an important milestone in the energy transition strategy of the region. Pilot tests and feasibility studies will be carried out as part of this project under the guiding ideologies of quality, feasibility, and profitability. The pilot aims to be a demonstration clean heating project in North China.
