China to launch first deep-water gas project

China is set to launch its first deep-water gas project in the South China Sea early next year, The Wall Street Journal reported. The plan signals China’s ambition to more than double its use of gas to 10% of local energy mix by 2020. Controlled by Canada’s Husky Energy (HSE.TSX) and Chinese state-run oil company CNOOC (00883.HKG), the US$6.5 billion project is expected eventually to pump about 4% of the country’s gas supply. It has the potential to send more gas to China than current imports from Australia, China’s second-largest supplier of liquefied natural gas.