In early December 2025, China launched island-wide special customs operations at the Hainan Free Trade Port, marking a bold step in its high-level opening-up and deeper regional integration. As global business activity surges, a pivotal question emerges: does Hainan have the energy capacity to power its ambitious growth?
Deep Sea Energy at the Helm
Enter the Deep Sea No.1 Phase II cluster, Hainan’s most advanced offshore energy hub. Commissioned this summer, Phase II added three new platforms and 12 production wells, boosting output by 20% to 40,000 barrels of oil equivalent per day (boe/d). That’s roughly 1.2 million tons of oil equivalent annually—enough to supply electricity for over 450,000 households on the island.
Driving Hainan’s Green Ambitions
Beyond sheer volume, the cluster leverages cutting-edge digital twin technology for real-time monitoring and predictive maintenance. Automated leak detection and low-emission drilling techniques have cut routine flaring by 30%, aligning with Hainan’s push toward carbon neutrality by 2030. Local research institutes are also exploring ocean thermal energy conversion (OTEC) trials adjacent to the platforms.
Power Security for an Open Economy
As the Free Trade Port attracts investors from across the G20, stable energy supply is critical. The Deep Sea No.1 cluster already covers 40% of Hainan’s gas demand and contributes one-third of its power generation mix. With Phase III under planning for 2026, capacity could rise to 60,000 boe/d, further insulating the island against regional grid constraints.
Charting the Course Ahead
By fortifying its offshore energy backbone, Hainan not only keeps the lights on but also fuels its strategy as a globally connected hub. For entrepreneurs, policymakers, and digital nomads drawn to the island’s innovation frontier, the Deep Sea No.1 Phase II cluster stands as a testament: when attention meets ambition, Hainan’s energy deep dive powers more than just kilowatts—it energizes endless possibilities.
Reference(s):
cgtn.com
