Friday, March 6th9.4°C
25326
24949

Husky starts up massive Liwan offshore natural gas platform in China

CALGARY - Husky Energy Inc. says natural gas has started to flow from the massive $6.5-billion Liwan offshore project in the South China Sea.

"Liwan is Husky's largest project to date and places us inside the door of one of the fastest growing energy markets in the world," CEO Asim Ghosh said in a release.

"It was a massive undertaking and is a great achievement for deepwater gas production in the Asia Pacific Region."

On a quarterly conference call last year, Ghosh likened the assembly of Liwan's offshore infrastructure to affixing downtown Calgary's Palliser Hotel to the top of the Calgary Tower — an enormous undertaking that requires extreme precision.

Husky (TSX:HSE) operates the deepwater infrastructure, while its partner, Chinese state-owned firm CNOOC Ltd., operates the shallow water facilities and onshore gas terminal. CNOOC holds 51 per cent of their production sharing contract, with Husky holding the rest.

The project, about 300 kilometres southeast of Hong Kong, taps into three offshore fields, using shared infrastructure to produce the gas and get it to market.

Gas from the first field, Liwan 3-1, has started flowing, with sales expected to increase to 300 million cubic feet per day in the second half of this year. Initial sales of condensates and natural gas liquids are expected to be between 10,000 and 14,000 barrels of oil equivalent per day.

The second field, Liuhua 34-2, is expected to be tied into the Liwan infrastructure during the second half of 2014, after which sales are expected to increase to 340 million cubic feet per day.

The third field, Liuhua 29-1, is expected to be tied in around 2016-2017, when total gas sales are expected to rise to between 400 and 500 million cubic feet per day.

For the first five years, gas from Liwan 3-1 and Liuhua 34-2 will sell at between US$11 and US$13 per 1,000 cubic feet, while negotiations are underway for the Liuhua 29-1 sales contract.

The project started up amid extremely stormy weather in the South China Sea. Husky expects production from its Asia Pacific segment to come in at the lower end of its 35,000 to 45,000 barrel per day guidance range for this year.

Husky shares rose 36 cents to $32.96 in late morning trading on the Toronto Stock Exchange.

Follow @LaurenKrugel on Twitter

The Canadian Press


Read more Business News

24500


Recent Trending




Today's Market
S&P TSX14952.50-150.61
S&P CDNX688.79-8.13
DJIA17856.78-278.94
Nasdaq4927.371-55.439
S&P 5002071.26-29.78
CDN Dollar0.7921-0.0089
Gold1163.70-32.2001
Oil51.61-0.94
Lumber282.70-4.30
Natural Gas2.849+0.008

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.55-0.10
Cantex0.035-0.005
Anavex Life Sciences0.18-0.004
Metalex Ventures0.0450.00
Russel Metals24.21-0.06
Copper Mountain Mining1.19-0.05
Colorado Resources0.14+0.01
ReliaBrand Inc0.0065-0.0015
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.22-0.005

 



25103

FEATURED Property
22247245032 Twinflower Crescent
$545,000
more details
Click here to feature your property
Please wait... loading


How to price: Step Four

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The purpose of the book was to make available to the owners of small companies, pricing techniques used by sophist...


Refinance your mortgage?

Canadian Mortgage rates are low and could be dropping down in time for the spring market following a drop in the Bank of Canada Rate on January 21 by 1/4% which will save new buyers and those with mo...


Creating your retirement vision

A vision means different things to different people. To the head of a large corporation, it’s the ability to chart a course that will deliver success (think Steve Jobs and Apple), to a shaman, i...

_








Member of BC Press Council


24681