Husky Energy Inc. has sanctioned the development of the Liwan 3-1 and Liuhua 34-2 fields, the main two fields in the South China Sea Liwan gas project.
The project will bring onstream three gas discoveries on Block 29/26 about 300 km southeast of Hong Kong.
Husky has submitted the overall development plan for Liwan 3-1 to the Chinese government for regulatory approval and completed a gas sales agreement for Liwan 3-1 production with CNOOC Gas & Power Group, Guangdong branch. The production will supply the Guangdong Province natural gas grid from an onshore gas plant at Gaolan Island, Zhuahai.
Husky expects first gas deliveries in 2013-14, with production ramping up through 2014 towards 300 MMcfd. After development of the third field, Liuhua 29-1, Husky expects the project to produce about 500 MMcfd in 2015.
Husky operates the project and holds a 49% interest. China National Offshore Oil Corp. holds the remaining interest.