Gas sales agreement in place for Liwan project offshore China

Sept. 20, 2011
Husky Energy will pursue development of the Liwan 3-1 and Liuhua 34-2 gas fields in the South China Sea.

Offshore staff

CALGARY, Canada – Husky Energy will pursue development of the Liwan 3-1 and Liuhua 34-2 gas fields in the South China Sea.

The company and China National Offshore Oil Corporation (CNOOC) are jointly developing the Liwan Gas project, which aims to commercialize at least three gas discoveries on block 29/26, 300 km (186 mi) southeast of Hong Kong.

They have submitted an Overall Development Plan (ODP) for Liwan 3-1 to the Chinese government authorities for regulatory approval and a gas sales agreement is in place for the field.

This was executed with CNOOC Gas & Power Group, Guangdong Branch. Production from Liwan 3-1 will supply the Guangdong Province natural gas grid from an onshore gas plant at Gaolan Island, Zhuahai.

Husky says the project is on schedule for first gas delivery in 2013/2014. Production from Liwan 3-1 and Liuhua 34-2 should build through 2014 to more than 300 MMcf/d.

Once the Liuhua 29-1 field is also approved and developed, the project should deliver a total of 500 MMcf/d by 2015.

09/20/2011