China has recently reported the discovery of a major gas field in the South China Sea, one that it claims may exceed 100 billion cubic meters and which is already one of Asia’s biggest military flashpoints.
This development, confirmed by the China National Offshore Oil Corporation (CNOOC) on Wednesday, could escalate disputes with other countries that have competing claims in the area. The Lingshui 36-1 gas field, labeled as the world’s first large ultra-shallow gas field in ultra-deep waters is located south east of Hainan, China’s southernmost island province.
The CNOOC has affirmed that relevant government authorities have validated the data concerning the Lingshui 36-1 gas field. However, it did not say if this resource is situated within the disputed waters of South China Sea.
China claims most of South China Sea amidst strong oppositions from many other countries including Philippines, Vietnam, Malaysia, Brunei and Taiwan. They are supported by US allies like EU and Japan as well as US. These findings are expected to increase tensions further.
According to CNOOC, original gas in place (OGIP) for Yinggehai Basin Qiongdongnan Basin and Zhujiangkou Basin combined amounts to over trillion cubic meters.
Tensions are escalating in this region where some nations are locked in territorial dispute over abundant oil and natural gas resources and fishery stocks. Besides being one of busiest shipping lanes globally with more than 20% of global trade passing through it annually.
“The company has made efforts to enhance its natural gas reserves and production through extensive exploration activities carried out in South China Sea,” said Zhou Xinhuai who is President and Chief Executive Officer at CNOOC. “Lingshui 36-1’s successful testing widens even further our natural gas resource pool for developing a trillion-cubic-meters-gas zone within South China Sea.”
He added that “The company will also continue to ramp up both exploration and development of hydrocarbon resources in the South China Sea as well as our energy supply capacity.”
China is currently the world’s largest importer of natural gas, spending around $64.3bn on 120 mt of liquefied and pipeline gas in 2023. The find would help to improve the country`s energy security.
However, oil and gas development in the South China Sea has diplomatic and political implications for rival claimants in the region. A previous incident involving CNOOC’s oil rig, Ocean Oil-981 near Paracel Islands led to massive anti-China demonstrations in Vietnam back in 2014.
At any rate, Beijing wishes to prevent unilateral oil and gas development activities by other countries within the South China Sea.
