China's recently discovered gas field in the disputed South China Sea could yield up to 100 billion cubic meters of natural gas, the state-owned China National Offshore Oil Corporation (CNOOC) said on Saturday.

The Lingshui 17-2 gas field, located some 150 kilometers off Beijing's southernmost Hainan island, is estimated to have an annual yield of at least four billion cubic meters, the Global Times relayed. But while the 100-billion-cubic-meter-find is significant, IHS Energy-China senior director Zhou Xizhou said the volume is roughly equivalent to only half a year of China's current gas supply.

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It is also possible that by the time the development of such a discovery is completed, the country's gas consumption could be more than it is today, he added.

Last year, Beijing's natural gas reserves reached 37 trillion cubic meters, while consumption amounted to about 180 billion cubic meters, according to a recent China Petroleum and Chemistry Industry Federation report.

China has been looking to reduce its natural gas dependence on other countries. According to Xiamen University energy analyst Lin Boqiang, China's reliance on foreign supplies is risky since it cannot store significant amounts of gas, unlike with oil.

Changes in bilateral relations could also have an effect on gas supply, he added.

Following the discovery of the Lingshui 17-2, the government had sought to expedite its gas and oil exploration projects in the hotly-contested East and South China Seas, and Bohai Sea.

In the South China Sea, increased exploration for deep sea drilling locations has been carried out. The State Council has also called for bids from foreign contractors to extract the resources.

Analysts say the increased deep sea drilling activities will strengthen China's territorial claims in the disputed waters and at the same time, help the country achieve aim of being 85 percent energy-independent by 2020.

The Lingshui 17-2 gas field has a depth of 1,500 meters. It was discovered late last year, about a month after the CNOOC oil rig withdrew after a tense standoff with Vietnam in the latter's Exclusive Economic Zone.

TagsChina National Offshore Oil Corporation, Lingshui 17-2, Energy, Oil rig, Territorial disputes in the South China Sea, Gas and oil reserve