SummaryMany shale gas and ultralow permeability tight gas reservoirs can have matrix permeability values in the range of tens to hundreds of nanodarcies. The ultrafine pore structure of these rocks can cause violation of the basic assumptions behind Darcy's law. Depending on a combination of pressure-temperature (P-T) conditions, pore structure and gas properties, NonDarcy flow mechanisms such as Knudsen diffusion and/or Gas-Slippage effects will impact the matrix apparent permeability. Even though numerous theoretical and empirical models have been proposed to describe the increasing apparent permeability due to Non-Darcy flow/Gas-Slippage behavior in nano-pore space, few literature have investigated the impact of formation compaction and the release of adsorption layer on shale matrix apparent permeability, which can be coupled together with the Non-Darcy flow/Gas-Slippage mechanism, during reservoir depletion.In this article, we first presented a thoroughly review on gas flow in shale nano-pore space and discussed what factors can impact shale matrix apparent permeability, besides the well-studied Non-Darcy flow/Gas-Slippage behavior. Then, a unified shale matrix apparent permeability model is proposed to bridge the effects of Non-Darcy flow/Gas-Slippage, geomechanics (formation compaction) and the release of adsorption layer into a single, coherent equation. In addition, a mathematical framework for an unconventional reservoir simulator that developed in this study is also presented.Different matrix apparent permeability models are implemented in the numerical simulator to examine what factors impact the matrix apparent permeability most. Furthermore, how these factors influence the average apparent permeability in the Simulated Reservoir Volume (SRV) and long-term production are also discussed. Finally, the impact of natural fracture networks on matrix apparent permeability evolution is investigated. The results indicate that even though the conductive fracture networks play a vital role in shale gas production, the matrix apparent permeability evolution during pressure depletion can still make a difference.