CNOOC from China has set its sights on turning a depleting reservoir in the South China Sea into a huge subsea gas storage facility.
Overproduction at the Yacheng 13-1 gas field in the Qiongdongnan basin has opened up the opportunity for the state-controlled player to create a facility capable of holding 40bcm of gas.
There is as yet no clear timeline for the completion of engineering and conversion work.
The field’s gas reserves have been almost depleted after 25 years of production since 1996.
The stored gas could come from re-gasified liquefied natural gas imports in Guangdong and Hainan as well as additional throughput from nearby fields.
The stored gas would then be set ashore to Sanya on Hainan Island via an existing 91-kilometre pipeline, and potentially also to Zhanjiang, in southern China’s Guangdong province, via a new pipeline.
According to the EIA document, the line will branch out from a trunk line linking the Yacheng 13-1 field with two power utilities in Hong Kong; Hong Kong Light & Power (CLP) and Castle Peak Power Station, and run 216 kilometres to Zhanjiang city.
The planned pipeline’s associated infrastructure will include an onshore gas terminal to be built in Zhanjiang that will be able to process 2.5bcm per annum of natural gas.