A higher energy demand has played a substantial role in the insistent investigation and exploration of unconventional oil and gas resources. Shale gas reservoirs are amongst the major unconventional resources. Technological advancement in both horizontal drilling and hydraulic fracturing methods have been the key to attain economical production rates from shale gas reservoirs. Shale gas reservoirs are known for their complex gas transport mechanisms as well as the complex natural and induced or hydraulic fracture geometries. Typical shale gas production is composed mostly of two-phase flow of gas and water. However, suitable modelling of the two-phase behavior while also incorporating the much more complex fracture geometries have been a challenge within the industry.