China National Offshore Oil Corporation (CNOOC) has announced a significant natural gas discovery in the South China Sea, a development that could have profound implications for the region’s energy landscape. The newly discovered Lingshui 36-1 reservoir is believed to hold more than 100 billion cubic meters (3.5 trillion cubic feet) of natural gas, making it one of the largest finds in the area in recent years.
The Lingshui 36-1 field is located in an ultra-deep water environment, with the gas layer situated just 200 meters below the seabed in 1,500 meters of water. This ultra-shallow gas layer in such deep waters is a first of its kind globally, marking a technical breakthrough for CNOOC and the broader oil and gas industry. The discovery defies conventional wisdom, as the prospect of finding a commercially viable gas field at such shallow depths beneath the seabed in deep waters was previously considered highly unlikely.
CNOOC estimates that the field could produce up to 10 million cubic meters of natural gas per day, providing a substantial boost to China’s domestic energy supply. This comes at a time when China is seeking to increase its natural gas production to reduce its reliance on coal and cut down on carbon emissions.
Discovery Could Shift Regional Energy Dynamics
The discovery of the Lingshui 36-1 field was initially announced by CNOOC in June and has since been confirmed by Chinese state regulators. When combined with previous discoveries in the region, the total estimated reserves in this part of the South China Sea now exceed one trillion cubic meters. To put this in perspective, these reserves are about one-sixtieth the size of Norway’s massive Troll field, one of the world’s largest natural gas fields.
While the exact location of the Lingshui 36-1 field has not been disclosed, the lack of protests from neighboring countries suggests that it lies within China’s internationally recognized Exclusive Economic Zone (EEZ) off the coast of Hainan Island. This is significant given China’s broader territorial claims in the South China Sea, where it asserts sovereignty over nearly the entire region, including areas that are part of the EEZs of other nations.
China’s claims have led to tensions with neighboring countries, particularly Vietnam, with whom it has had several disputes over oil and gas exploration projects. In the past, China has aggressively asserted its claims by deploying rigs into disputed waters, leading to diplomatic standoffs and international criticism.
The development of the Lingshui 36-1 field is expected to proceed without the same level of conflict, given its likely location within China’s uncontested EEZ. However, the discovery will undoubtedly strengthen China’s hand in the ongoing strategic competition over the South China Sea, a region that is not only rich in natural resources but also a crucial maritime route for global trade.
As China moves forward with the development of the Lingshui 36-1 field, the discovery is set to enhance the country’s energy security and could influence the geopolitical dynamics of the South China Sea. For now, the focus will be on the technical and logistical challenges of bringing such a complex field into production, but the broader implications for the region’s energy politics are already beginning to emerge.
