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Testing of the 16th exploitation well at the Longwangmiao formation in the Moxi block of the Anyue gas field in southwestern China's Sichuan Basin has been completed.

The Moxi 009-2-H2 well, which daily produces 2.02 million cubic meters of feed gas, is one of the top six high output wells among the current 16 drillings, according to PetroChina Southwest Oil and Gasfield Co, a subsidiary of the China National Petroleum Corp.

The company plans to finish the construction of 30 exploitation wells by the beginning of next year, enabling the Longwangmiao formation to produce 11 billion cubic meters of natural gas annually.

The reservoir at the Longwangmiao formation is a major breakthrough made by the company in natural gas exploration. Located in Sichuan province's Suining and Ziyang cities and Chongqing's Tongnan county, the formation has proven natural gas reserves of 440 billion cubic meters, one of the largest in China.

The company has finished two projects with a total annual production capacity of 5 billion cubic meters. Another project with 6 billion cubic meters capacity is expected to finish construction in October and go into full operation in the first quarter of next year.

China burnt 178.6 billion cubic meters of natural gas last year, according to the National Development and Reform Commission.

"The development of the Longwangmiao formation not only contributes to the regional economic development of Sichuan and Chongqing, but also helps the country optimize energy structure and reduce air pollution," said Wang Guangyun, party chief of PetroChina Southwest Oil and Gasfield Co.

Wang said the company is expected to produce 16 billion cubic meters of natural gas this year, generating revenue of 43.5 billion yuan. It aims to produce 30 billion cubic meters of natural gas annually by 2020.