On 25^h June 2025, China has officially launched the second phase of a major deep-sea natural gas development project, significantly enhancing its energy production capacity. The expansion, which adds an estimated 4.5 billion cubic meters (bcm) of natural gas annually to the national supply, marks a critical step forward in the country’s efforts to boost domestic energy security and diversify sources of cleaner fuel.

The deep-sea gas field, located in the South China Sea, is part of a broader strategy to tap into offshore energy reserves as China aims to reduce reliance on coal and lower its carbon emissions. The project is led by China National Offshore Oil Corporation (CNOOC), the country’s largest offshore oil and gas producer. With the successful commissioning of Phase 2, the gas field is expected to become one of China’s largest offshore contributors to the natural gas grid.

According to CNOOC, the newly operational facilities include additional subsea wells, expanded processing infrastructure, and improved transportation systems to ensure a steady and secure supply of natural gas. The added output will be enough to meet the annual gas demand of over 15 million households, significantly strengthening energy availability in key coastal regions.

This milestone comes amid rising domestic demand for natural gas, which has become an increasingly important part of China’s energy mix. As the country transitions toward cleaner fuels under its “dual carbon” goals—peaking carbon emissions before 2030 and achieving carbon neutrality by 2060—the expansion of natural gas infrastructure plays a vital role in bridging the gap between coal dependency and renewable energy dominance.

The development of offshore gas fields also helps China mitigate risks associated with energy imports and geopolitical pressures on supply chains. By harnessing more domestic resources, particularly from challenging deep-sea environments, China is showcasing its growing technical capabilities in offshore exploration and production.

Analysts view the successful launch of Phase 2 as a demonstration of China's strategic intent to bolster energy independence while supporting the country's climate goals. The gas from the new phase will not only reduce greenhouse gas emissions compared to coal but will also enhance energy reliability as the country continues to urbanize and industrialize.