Eastern South China Sea gas flow starts

By OGJ editors
HOUSTON, Mar. 18 -- CNOOC Ltd. has started production at the rate of 30 MMcfd from Panyu 30-1 gas field in the Pearl River Mouth basin 240 km southeast of Hong Kong.

The company reportedly has identified 1.4 tcf of recoverable gas in the area, and Panyu production is to stabilize at 90 MMcfd this year and peak later at 160 MMcfd.

CNOOC will transport the gas from the Panyu platform in 200 m of water in the eastern South China Sea through a pipeline to a gas processing terminal at Zhuhai, just north of Macau. Industries and residential customers in the area across the bay west of Hong Kong will consume the gas.

CNOOC developed Panyu 30-1 in conjunction with Huizhou 21-1 oil and gas field, which started producing oil in 2005.

Husky Energy Ltd.'s 2006 Liwan 3-1 gas discovery, in 1,345 m of water on Block 29/26, about 350 km southeast of Hong Kong, is on the same geologic trend with Panyu (OGJ Online, Feb. 24, 2009).

China's first gas development in the South China Sea, Yacheng 13-1 gas-condensate field south of Hainan Island, went on production in 1996. It feeds gas and liquids to the island and delivers gas through a 775-mile pipeline—one of the world's longest offshore conduits—to a power station in Hong Kong.

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