China confirms discovering world’s first large shallow gas field in disputed South China Sea

BEIJING: China has confirmed the discovery of a major gas field, estimated to be over 100 billion cubic metres, in the disputed South China Sea, which is expected to add fuel to the current round of military and diplomatic tensions between Beijing and other claimants in the region.

The original gas in place (OGIP) of the Lingshui 36-1 gas field -- the world's first large, ultra-shallow gas field in ultra-deep waters -- has been estimated at more than 100 billion cubic meters, state-run China National Offshore Oil Corporation (CNOOC) announced on Wednesday.

The relevant government authorities have approved the data, it said.

The Lingshui 36-1 gas field is located in waters southeast of Hainan, China's southernmost island province, the CNOOC said, without specifying whether it falls in the disputed waters of the South China Sea (SCS)

The SCS is hotly contested waters. While China claims most of the SCS, The Philippines, Vietnam, Malaysia, Brunei and Taiwan have counterclaims. The US, EU, Japan and allies back the claims of the small countries against China.

Observers say the findings of a massive new gas field were expected to add to the prevailing tensions.

The CNOOC has estimated that the OGIP of the Yinggehai, Qiongdongnan and Zhujiangkou basins in the SCS is more than 1 trillion cubic meters.

Tensions are mounting in the South SCS – a hotly contested and globally significant waterway that has become a flashpoint for conflict mainly because of its rich oil, natural gas and fish resources. It is also one of the world’s busiest shipping routes, through which more than 20 per cent of global trade passes.

The CNOOC statement also quoted Zhou Xinhuai, its president and chief executive, as saying that the “South China Sea has been a major region for the company to boost natural gas reserves and production. The successful testing of Lingshui 36-1 further expands the resource base for the development of a trillion-cubic-meters gas region in the South China Sea”.

“The company will continue to step up exploration and development of hydrocarbon resources in the South China Sea and to enhance our capacity of energy supply,” the Hong Kong-based South China Morning Post quoted Zhou as saying.

China is the world’s largest natural gas importer, with about USD 64.3 billion spent on 120 million tonnes of liquefied and pipe gas in 2023. The discovery of major reserves would be a boost to the country’s energy security.

However, developing oil and gas in the SCS would likely face diplomatic and political risks from rival claimants, the Post report said.

In 2014, CNOOC’s oil rig Ocean Oil-981’s operation in a disputed area near the Paracel Islands triggered widespread anti-China protests in Vietnam.

Beijing has also tried to stop unilateral oil and gas development in the SCS by other countries.