CNOOC is expected to commence production of natural gas production from the Dongfang 1-1 field by the end of the third quarter of this year. Dongfang is located approximately 100 kilometers offshore Hainan Island and has proven reserves of 99.7 billion cubic meters of natural gas. Initial production from the field is estimated to be 2.4 billion cubic meters per year. The company says that most of the field engineering work and onshore facilities are complete. Development of the field will cost about 3.3 billion yuan.
1.6 billion cubic meters of the gas is allocated to the Yangpu power plant in Hainan for power generation. The remainder of the gas output will be supplied to a chemical complex on the island which comprises a synthetic ammonia production unit with an annual capacity of 450,000 metric tons and an 800,000 ton/year urea unit.