Husky Energy and CNOOC Ltd. have started production at the Liuhua 34-2 gas field in the South China Sea, the second field to be brought online at the Liwan Gas Project this year, according to a press release. The Liwan 3-1 Field began production in March 2014.

The Liuhua 34-2 field will produce about 850 Mcm/d (30 MMcf/d, gross) in addition to the Liwan 3-1 volumes.

Located about 300 km (186 miles) southeast of the Hong Kong Special Administrative Region, the Liwan Gas Project consists of the Liwan 3-1, Liuhua 34-2 and Liuhua 29-1 fields, which share a subsea production system, subsea pipeline transportation and onshore gas processing infrastructure. Natural gas from Liwan 3-1 and Liuhua 34-2 is being processed at the onshore gas terminal at Gaolan and sold to the mainland China market with initial production covered by fixed-price gas sales agreements.

Husky holds a 49% interest in the production-sharing contract (PSC) for the Liwan Gas Project and operates the deepwater infrastructure. Its partner CNOOC Ltd. holds a 51% interest in the PSC and operates the shallow-water facilities and onshore gas terminal.