Primeline Energy's LS36-1 Gas Field Development Plan Gets Chinese Approval

Primeline Energy Holdings last week announced that the overall development programme for its LS36-1 gas field in East China Sea has received final approval from the Chinese government.

China National Offshore Oil Corporation (CNOOC) notified Primeline on Friday that the National Development and Reform Commission (NDRC) has approved the development plan, Primeline said in a statement.

“This approval allows the project operator, CNOOC, which holds a 51% interest, to finalise plans for the commencement of gas production. During the last 3 years CNOOC has completed the majority of the development work, including the production platform, development wells, subsea pipeline, gas processing terminal and the offshore section of the gas sales pipeline. The remaining development work includes the laying of the last 3 km of the gas sales pipeline, connection to the provincial gas grid and final commissioning,” Primeline said.

Construction of the final 3 km of gas sales pipeline commenced in April 2014 and is expected to be completed in June. CNOOC currently envisages that the gas production will commence in third quarter of 2014, subject to final coordination with the downstream buyer, Zhejiang Provincial Gas Development Co.