In this regard, the parties have inked a strategic cooperation agreement aimed at promoting the construction of a pilot site for the exploration and exploitation of gas hydrate in the Shenhu region of the Northern South China Sea.
Details about when the pilot project would begin and the investment have not been disclosed yet.
The agreement though is expected to put the industrial development of gas hydrate in China on a fast track. According to CNPC, the agreement has great strategic significance in terms of securing China’s energy security and streamlining its energy mix with the new source.
CNPC stated: “Under the agreement, CNPC will continue to take advantage of its technologies and experience in onshore natural gas development and deep-sea hydrate test production in building the pilot site.”
In mid-May, China claimed to have extracted samples of natural gas hydrates (NGH) or combustible ice from the South China Sea. Combustible ice is being regarded by scientists across the world as a perfect replacement for oil and natural gas.
CNPC had stated in May that the country had carried out a pilot production of natural gas hydrates in the South China Sea where more than 120,000 cubic meters of natural gas was extracted from the deposits at a depth of 1,266m below sea level.
The Chinese government will actively develop methane hydrate during the 2016-2020 period, reported Reuters.
China had been pursuing the commodity for nearly two decades through its research and exploration programs to extract flammable or combustible ice from the sea waters.
Image: China to move ahead with its pilot methane hydrate project in South China Sea. Photo: courtesy of China National Petroleum Corporation.
