Discovery of Massive Gas Field in South China Sea

On 8th August, 2024, China National Offshore Oil Corporation (CNOOC) announced that the Lingshui 36-1 gas field in the South China Sea holds more than 100 billion cubic meters of natural gas, potentially intensifying regional tensions.

Key Points

Field Location: The Lingshui 36-1 gas field, located southeast of Hainan, is noted as the world's first large ultra-shallow gas field in ultra-deep waters. The exact location within the disputed South China Sea has not been specified.
Regional Tensions: The South China Sea is a heavily contested area, with China claiming most of it while the Philippines, Vietnam, Malaysia, Brunei, and Taiwan also have claims. The US, EU, and Japan support the smaller nations' claims.
Impact on Tensions: The discovery is expected to exacerbate existing disputes, given the South China Sea’s significance due to its rich resources and strategic shipping routes.
Further Estimates: CNOOC has estimated that other basins in the South China Sea, including Yinggehai, Qiongdongnan, and Zhujiangkou, contain over 1 trillion cubic meters of gas.
Energy Security: China, the largest global importer of natural gas, spent USD 64.3 billion on gas imports in 2023. The new reserves could bolster China's energy security.
Historical Context: Past oil and gas exploration activities by CNOOC in disputed areas have led to regional disputes, such as the 2014 protests in Vietnam over CNOOC’s operations near the Paracel Islands.