China has confirmed the discovery of a large gas field in the South China Sea, state media reported on Wednesday.
The field, called Lingshui 36-1, is estimated to contain more than 100 billion cubic meters of natural gas and is the world’s first “ultra-shallow gas field in ultra-deep waters,” China’s official Xinhua news agency reported.
The latest “major exploration breakthrough” was announced by the China National Offshore Oil Corporation (CNOOC) in June and the discovery was examined and registered by state authorities on Wednesday.
The report did not specify the exact location of the field, saying only that it is in waters southeast of Hainan, China’s southernmost island province.
China claims almost the entire South China Sea with a “nine-dash line,” while Vietnam, the Philippines, Malaysia, Brunei and Taiwan have overlapping claims. Disputes and tensions often arise over each other’s oil and gas exploration and development in the disputed waters.
The field increases China’s proven geological natural gas reserves in the resource-rich South China Sea and the basins off the coast of Hainan Island and the Pearl River estuary, exceeding the trillion cubic meter mark.
“The Lingshui 36-1 gas field is located in the western South China Sea at an average water depth of about 1,500 meters,” CNOOC said in June.
“The main gas-bearing reservoir is the Quaternary Ledong Formation with an average depth of 210 meters. The field has been tested to produce over 10 million cubic meters of natural gas per day.”
The CNOOC statement also quoted Zhou Xinhuai, its president and CEO, as saying: “The South China Sea is an important region for the company to increase its natural gas reserves and production. The successful testing of Lingshui 36-1 expands the resource base for the development of a trillion cubic meter gas region in the South China Sea.”
“The company will continue to advance the exploration and development of hydrocarbon resources in the South China Sea and increase our energy supply capabilities.”
China is the world’s largest importer of natural gas and will spend about $64.3 billion on 120 million tons of liquefied and pipeline natural gas in 2023. The discovery of large reserves would strengthen the country’s energy security.
However, developing oil and gas reserves in the South China Sea would likely involve diplomatic and political risks due to rival claimants. In 2014, the deployment of CNOOC’s Ocean Oil-981 drilling rig in a disputed area near the Paracel Islands in Vietnam sparked widespread anti-Chinese protests.
In addition, Beijing has tried to stop other countries’ unilateral oil and gas production in the South China Sea.
Chinese coast guard vessels have reportedly disrupted operations at Malaysia’s gas projects, and in recent years there have been repeated confrontations between Chinese and Vietnamese vessels over Hanoi’s oil drilling at the controversial Vanguard Bank.
