• 3 minutes Tesla is the Most American Made Car!
  • 7 minutes Should the US government be on the hook for $15 billion?
  • 11 minutes Forecasts for oil stocks.
  • 16 hours U.S. Presidential Elections Status - Electoral Votes
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 47 mins China Producing Half of the Worlds Electrical Vehicle Batteries is Experiencing Explosive Pollution
  • 6 hours California breaks 1 GW energy storage milestone
  • 1 day Colonial pipeline hack
  • 2 days Severe Drought in the West Will Greatly Reduce Electrical Production from Hydroelectric Turbines.
  • 2 hours Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 3 days Survival of Oil and Gas industry.
Qatar Walks Tightrope As It Eyes Global LNG Leadership

Qatar Walks Tightrope As It Eyes Global LNG Leadership

Qatar recently announced its intention…

Natural Gas Prices Still Have Room To Run

Natural Gas Prices Still Have Room To Run

Natural gas prices have climbed…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

China Starts Production At Massive Deepwater Gas Field

China’s CNOOC this week started production from the first deepwater gas field it operates fully, Reuters has reported, adding that the field is expected to yield some 4.39 billion cubic meters of natural gas, representing 2 percent of China’s total output.

The Chenhai-1 well was drilled at the Lingshui 17-2 field in the South China Sea and, according to CNOOC, could push its total natural gas production capacity to more than 13 billion cubic meters annually.

The launch of production from the Chenhai-1 well is part of CNOOC’s plan to boost offshore drilling considerably in a bid to increase the share of natural gas in its total output from 21 percent right now to half by 2035.

The plan is part of Beijing’s stated goal to become a net-zero economy by 2060, which, according to a Reuters report, has to include a transition from coal to natural gas first before moving on to renewables.

This embracing of gas as a bridge between coal and renewables is driving a surge in demand for the commodity. Already one of the world’s largest gas importers, China is on its way to this year dethrone Japan as the largest LNG importer. And this dependence on imports does not sit well with decision-makers in Beijing, especially as this year total gas demand is seen rising by 10 percent to 350-356 billion cubic meters.

Meanwhile, local production is growing but not fast enough. Even so, it added 15 percent during the second half of 2020, according to Fitch Ratings, which also said it expected the trend of strong production growth to continue over the next five years.

China has abundant oil and gas reserves but tapping them is often challenging due to geological reasons, which has so far prevented the country from shrinking its overwhelming dependence on imported oil and gas. Despite this, CNPC earlier this month announced a major discovery in the Tarim Basin, saying reserves were estimated at some 16 billion tons.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News