Thursday, October 30th9.5°C
23888
23823

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

22831


Recent Trending




Today's Market
S&P TSX14495.58-31.99
S&P CDNX770.78-10.29
DJIA17162.86188.55
Nasdaq4550.376+1.15
S&P 5001988.92+6.62
CDN Dollar0.8935-0.0006
Gold1201.60-23.30
Oil81.15-0.81
Lumber324.50+2.90
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.115+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.12-0.03
Cantex0.045-0.015
Anavex Life Sciences0.172-0.008
Metalex Ventures0.0350.00
Russel Metals32.24-0.33
Copper Mountain Mining2.020.00
Colorado Resources0.14+0.005
ReliaBrand Inc0.012-0.004
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.370.00

 



22831

FEATURED Property
20610084099 June Springs Rd
$1,250,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


23091