Chinese energy conglomerate CNOOC is currently studying the possibility of building a floating liquefied natural gas (FLNG) vessel for use in the South China Sea.

The company is currently doing a pre-feasibility study and is talking to international engineering companies about a possible joint design of the vessel.

According to an official from CNOOC, the company is planning to develop an FLNG plant that could handle up to 2.4 million tonnes of gas per year (tpy) and operate at a depth of 1,500 metres.

CNOOC earlier announced that its research and development arm together with two Chinese universities had designed a small-scale FLNG vessel with a capacity of about 5,000 tpy.

Wang Jinlian, secretary-general of the China Association of the National Shipbuilding Industry said the government was ready to finance research and development and offer tax incentives for any local manufacturing work needed to build such floating liquefaction plants.