<p>Shale gas resources are abundant worldwide and hold significant potential for addressing the growing energy supply gap caused by the gradual depletion of conventional natural gas resources. Despite recent progress in the industrial-scale extraction of shale gas, a better understanding on gas transport mechanisms within shale reservoirs is still desirable, including the factors influencing permeability and the coupling between fluid flow and solid deformation. Based on pore-scale structure of shale, this paper deals with gas transport across a wide range of Knudsen numbers and the related coupled effects of seepage and stress evolution during gas production. In order to better simulate boundary Knudsen layer effect, an effective viscosity formulation is established by linking between effective relaxation time and Knudsen number, and the resulting capability in capturing micro-scale gas flow is later demonstrated by Lattice Boltzmann simulations. A novel permeability correction factor with only one fitting parameter is then derived from volume diffusion hydrodynamics, which is in better agreement with experimental observations compared to existing models. Furthermore, by incorporating gas adsorption effects, an apparent permeability model is constructed with the new permeability correction factor and validated through comparisons with experimental results, demonstrating its enhanced predictive capability compared to the existing theoretical models.</p>