China's CNOOC dives into uncharted waters in bold gas pivot

CNOOC's new ultra-deep field in the South China Sea started flowing in late June to the world's largest customized floating platform 1,500 meters above the sea bed, it marked a key phase in China's gas drive.

For CNOOC, the output from one of Asia's deepest gas fields proved the company had the engineering chops to complete its first wholly-owned project on schedule and make significant strides towards its target of gas making up half its output portfolio by 2035, from 21% currently. 

For China, the tapping of major gas reserves within its own waters supported its plan to use natural gas as a 'bridge fuel' that will help the country meet its goal of capping carbon emissions by 2030 while phasing out dirtier coal.

And for the broader energy sector, the start-up of Lingshui 17-2, with proven reserves of 100 billion cubic meters and wells sunk 4,000 meters below the seabed, shored up confidence that China's energy majors possess the technical and operational acumen to fulfill their gas ambitions even as international rivals slow fossil fuel development in favour of green energy projects.

"CNOOC doesn't make excuses for the gaseous part of its portfolio, having firmly pitched its tent with the camp that sees natural gas as a key transition fuel in the global pivot to clean energy," said Readul Islam, research analyst at Rystad Energy.

"Given China's demand for energy now, gas satisfies that demand with the lowest emissions baggage."

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