CNOOC to raise the share of natural gas to half by 2035

Source: Global Times Published: 2020/10/25 12:43:40

The liquid natural gas (LNG) carrier Pan Americas carrying 67,000 tons of LNG from Hong Kong, berths at the LNG terminal in North China's Tianjin on Monday. The LNG terminal belongs to China National Offshore Oil Corp (CNOOC), one of the world's top gas importers. More than six million tons of clean energy has been delivered to North China via the terminal since it started operation in 2013. Photo: IC

China's largest offshore oil and gas producer recently announced it will raise the share of natural gas from the current 21 percent to 50 percent by 2035 to contribute to a national carbon neutral target.

As China ramps up efforts to respond to climate change issues, CNOOC aims to expand the use of low carbon energy as well as its businesses in renewables, which is also in accordance with international oil giants.

At a conference announcing its third-quarter operational results, the company said its total net production increased 5.1 percent from the previous year to 131.2 million barrels of oil equivalent, boosted by domestic projects.

Projects such as lvda 21-2/16-3 and Dongfang 13-2 gas fields led to domestic production rising 10.4 percent year on year, while overseas projects realized a production of 42.6 million barrels of oil equivalent, a decrease of 4.6 percent.

During the period, CNOOC put four new domestic offshore projects into operation, including three at Bohai Bay- Nanbao 35-2 oil field S1 area, Jinzhou 25-1 oilfield 6/11 area and Bozhong 19-6 condensate gas field-and Liuhua 16-2/Liuhua 20-2 in the Pearl River Mouth basin.

Due to weak oil prices impacted by the coronavirus, its overseas projects such as Nigeria's deepwater Egina and Longlake oil sands in Canada faced operation restrictions.

Its third-quarter oil and gas revenues fell 26.8 percent year on year to 35.55 billion yuan ($5.32 billion) as weak oil prices overrode the benefits of increased production and sales. 

However, natural gas prices rose 2% to $5.85 per thousand cubic feet, boosted by bullish prices and sales growth, with realized oil prices dropping to $43.03 per barrel, a decrease of 29.3 percent year-on-year.

CNOOC said it will enhance natural gas exploration in both domestic and overseas projects. Domestically, CNOOC expects its two major gas fields - newly developed Bozhong 19-6 condensate gas field and Lingshui 17-2 deepwater gas field in the South China Sea, which is expected to begin production in the second half of 2021 - will drive production of natural gas growth. 

Its third-quarter capital expenditure fell 5.8 percent to 18.4 billion yuan. 

Global Times 


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