First gas from the field is expected to be delivered to the end users from early November
Canadian integrated energy company Husky Energy has completed commissioning at the Liuhua 29-1 field, which is the third field at the Liwan gas project offshore China.
The company has completed the seven-well Liuhua 29-1 field, in collaboration with China National Offshore Oil Corporation (CNOOC).
Husky said that the field was completed despite the COVID-19 pandemic as well as the associated global economic volatility.
The Liuhua 29-1 field is expected to deliver first gas to the end users from early November.
Located in the block 29/26 of South China Sea, approximately 300km south-east of Hong Kong Special Administrative Region, $6.5bn Liwan gas project is said to be China’s first deep-water gas field development.
The project consists of two natural gas fields including the already producing Liwan 3-1 and Liuhua 34-2 fields.
Husky Energy CEO Rob Peabody said: “The startup of Liuhua 29-1 just two years after the project was sanctioned is a significant milestone for Husky and CNOOC. This third field will provide Husky with additional stability in funds from operations.”
The Liuhua 29-1 field is expected to generate $1.3 billion in funds for Husky
The company said that the third gas field is tied to the existing infrastructure at Liwan project.
Till date, two producing gas fields at the Liwan project totally produced nearly 390 million cubic feet of natural gas a day and 16,000 barrels of associated liquids per day.
Husky Energy said that alone the Liuhua 29-1 field is estimated to produce $1.3bn in funds from operations for over the next decade.
Once operational in 2021, the whole project is estimated to deliver approximately $950m in funds and is expected to produce 450 mmcf/day of natural and 17,500 bbls/day of liquids