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China in $5 billion drive to develop disputed East China Sea gas

Chinese state-owned oil companies want to develop in the East China Sea gas field seven new natural gas from the seabed may be lost beneath the waters claimed by Japan, a move that could further inflame tensions in the disputed area and Tokyo.
Beijing has slowed exploration in the energy-rich East China Sea, Asia's biggest security risk, because competing territorial claims, but it is rapidly expanding its gas, cheaper and cleaner energy, coal and oil imports hunt.
Chinese state-owned oil and gas company CNOOC will soon be submitted to the State plan approved development Huangyan two, flat north, a total of seven new areas, two industry officials in direct knowledge of the project told Reuters reporters.
Ratification will bring the total number of projects Huangyan what is called nine areas.
China has been in Huangyan I have two fields for approval. Huangyan project is expected to cost more than 3 billion yuan (4.9 billion), including Chinese shipyards are now under construction in 11 production platforms.
If approved, the seven new natural gas fields will not see a big jump in the total output of China's natural gas supply is only one billion cubic meters last year's 106 (BCM) is a part of, and in the disputed South China Sea and Close Bohai Bay in northern China dwarfs. Chinese geologists said that in the East China Sea gas reserves is much smaller, more dispersed.
A bigger problem is that if Beijing approved the political risk of new gas fields. In the East China Sea tensions have escalated this year, with Beijing and Tokyo scrambling fighters and patrol vessels ordered shadow each other and raise fear, a miscarriage of justice may lead to a wider conflict.
"This is a sign of the Chinese side, the Japanese side on the issue of oil and gas fields from lack of exercise patience," said Koichi Nakano, Tokyo Sophia University political science professor.
China and Japan agreed in 2008 to jointly develop the area of ??hydrocarbons, but hopefully Tokyo maritime boundary issues resolved, the exploitation of gas fields.
"Now the question is what will be the reaction in Japan, and whether they would be able to talk to China's unilateral move," Nakano said. "But the escalation of tensions led to a war, I do not think so, Americans will pay close attention to this serious concern, and may play a mediating role here."
Japanese Prime Minister Shinzo Abe (Shinzo Abe), a spokesman said: "Our understanding is that Japan and China should continue to develop this area of ??the dialogue on the issue, it should not accept any unilateral action."
Even though the National Development and Reform Commission approved a new gas field, the pace of development can be determined by the Chinese Ministry of Foreign Affairs, requires oil companies to seek their approval before each drill. Strained relations with Japan may be at the time such permission.
Major expansion in the East China Sea
China and Japan do not agree with them where the maritime boundary between the East China Sea. Beijing says its activities are in the Chinese territory, while Tokyo worry about China drilling near the disputed line will enter geological formations in its waters.
Japan lodged a protest earlier this month after testing well construction, I was about 26 kilometers in Huangyan (16 miles) west of the disputed line. As a baseless, Chinese Foreign Ministry rejected the protest, saying that Beijing drilling rights in its sovereign waters.
In 2012 the U.S. Energy Information Administration estimates that the East China Sea undiscovered natural gas has 1-2000000000000 ft3 (28-57 one hundred million cubic meters) of proven and probable natural gas reserves, moderate regulation and Chinese sources estimated at up to 250 trillion cubic feet of resources.
If approved, the new field will provide a manufacturing center in Zhejiang Province, China, about 400 kilometers (249 miles) away on the East Coast, the production is expected to begin in the fourth quarter of 2015, officials said.
Areas will have a combined annual production capacity of nearly 400 million cubic meters, from the region's current output is less than 100 million cubic meters, will account for the end of 2016, China's natural gas production is estimated around 2%.
CNOOC and Sinopec partners have developed Huangyan me, this is in June 2012, by the National Development and Reform Commission officially approved, is due to begin production of natural gas in the next year in September. In addition, the planning board is flat North Second, is expected to be on-line in 2016.
New development and the industry's story quoted anonymity because of the sensitivity of the topic, CNOOC media officials declined to comment.
Chinese fast-track hunt for gas
China, the world's largest energy user, is to increase the use of natural gas, natural gas demand forecast from last year's 14.7 billion cubic meters in 2030 increased by more than four times the fast lane. China is the world's fourth-largest natural gas consumption.
China first began pumping gas from the Chunxiao oil and gas fields, a large part of the West Lake trough, but in early 2006, the territorial dispute has hampered the industry to actively explore and develop the region, Chinese industry experts said.
"China has made a compromise, slowing down work for several years," state oil company official said, "the card is in the hands of the Chinese people, because the company is able to develop (in this area) do after all the years of exploration . "
China East China Sea plans to expand investment in the region, after nearly six years of calm since the 2008 agreement to jointly develop the region's hydrocarbons.
"Since 2008, the two countries reached a consensus and common development, the Japanese almost did not make any genuine diplomacy towards that direction, said:" The Japanese seem to want to solve the border first, before moving cooperation, which is completely unrealistic Liu Junhong, China researcher at the Institute of Contemporary International Relations.
Under the proposed expansion plan, Huangyan II, which is near the disputed maritime border, which will include two natural gas fields. Huangyan I have two fields.
An undisputed area is located in the west side of Lake trough, flat north, there will be three fields, in the first stage and the second stage under the other two.
 



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