There is considerable and timely interest in oil and condensate production from liquid-rich regions, placing emphasis on the ability to predict the behavior of gas condensate bank developments and saturation dynamics in shale gas reservoirs. As the pressure in the near-wellbore region drops below the dew-point, liquid droplets are formed and tend to be trapped in small pores. It has been suggested that the injection of CO 2 into shale gas reservoirs can be a feasible option to enhance recovery of natural gas and valuable condensate oil, while at the same time sequestering CO 2 underground. This work develops simulation capabilities to understand and predict complex transport processes and phase behavior in these reservoirs for efficient and environmentally friendly production management.Although liquid-rich shale plays are economically producible, existing simulation techniques fail to include many of the production phenomena associated with the fluid system that consists of multiple gas species or phases. In this work, we develop a multicomponent compositional simulator for the modeling of gas-condensate shale reservoirs with complex fracture systems. Related storage and transport mechanisms such as multicomponent apparent permeability (MAP), sorption and molecular diffusion are considered. In order to accurately capture the complicated phase behavior of the multiphase fluids, an equation of State (EOS) based phase package is incorporated into the simulator. Due to the large capillary pressure that exists in the nanopores of ultra-tight shale matrix, the phase package considers the effect of capillary pressure on phase equilibrium calculations. A modified negative-flash algorithm that combines Newton's method and successive substitution iteration (SSI) is used for phase stability analysis under the effect of capillary pressure between oil and gas phases.In addition, a lower-dimensional discrete fracture and matrix (DFM) model is implemented. The DFM model is based on unstructured gridding, and can accurately and efficiently handle the non-ideal geometries of hydraulic fracture in stimulated unconventional formation. Optimized local grid refinement (LGR) is employed to capture the extremely sharp potential gradient and saturation dynamics in the ultra-tight matrix around fracture.We apply the developed simulator to study the combined effects of capillary pressure and multicomponent storage and transport mechanisms that are closely associated with the phase behavior and hydrocarbon recovery in gas-condensate shale reservoirs. We present preliminary simulation studies to show the applicability of CO 2 huff-n-puff for the purpose of enhanced hydrocarbons recovery. Several design components such as the number of cycles and the length of injection period in the huff-n-puff process are also briefly investigated.