In the South China Sea, China has declared the discovery of a significant natural gas field. Located southeast of Hainan province, the newly discovered gas field known as Lingshui 36-1 is thought to contain more than 100 billion cubic meters of natural gas.
China’s energy independence has advanced significantly with the discovery of the Lingshui 36-1 gas field, situated in waters that average 1,500 meters in depth. June marked the initial announcement of the finding by the state-owned company, China National Offshore Oil Corporation (CNOOC). The area’s enormous potential was confirmed on Wednesday when it was formally registered with Chinese authorities.
China, the biggest natural gas importer in the world, spends over USD 64.3 billion a year on pipeline gas and 120 million tonnes of liquefied natural gas. This recently found resource has the potential to improve the country’s energy security by lowering its dependency on imports.
However, tensions currently exist with neighboring nations that also claim portions of the region are anticipated to worsen as a result of the development of oil and gas resources in the South China Sea. Territorial disputes have long been a source of contention in the South China Sea, and the finding of such a valuable resource may worsen these issues.
For example, several reports have revealed that Chinese Coast Guard vessels had previously interfered with Malaysia’s gas operations, underscoring the continuous power struggle in the area. These contested waters are extremely volatile, as seen by the repeated clashes between Chinese and Vietnamese vessels over Vietnam’s oil drilling activities in the disputed Vanguard Bank area.
There is still a good chance that the South China Sea will see more political and military tension as China develops the Lingshui 36-1 gas field. Although the discovery is good news for China’s energy goals, it also has the potential to escalate tensions in the area.