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Offshore LNG import terminal proposed by CLP

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LNG Industry,

CLP Power Hong Kong Ltd has announced that it is taking development work forward to construct an offshore LNG terminal in Hong Kong waters. The government recently announced plans to increase the usage of natural gas in power generation from 2020 onwards, and so this project will help meet the government’s environmental objectives. CLP has submitted a project profile of the proposal to the Environmental Protection Department, which is currently available for a 14-day public inspection.

The project will give Hong Kong direct access to the international market for gas supplies and improve its bargaining power for natural gas purchases. It will also improve Hong Kong’s energy security. CLP currently sources most of its natural gas from the Second West-East Gas Pipeline and the South China Sea via subsea pipelines.

CLP and Hongkong Electric Co. Ltd will jointly explore the feasibility of an offshore import terminal in Hong Kong waters based on floating storage and regasification technology. They will examine whether the proposed project is capable of serving as a potential gas supplier for Hong Kong’s future supply needs.

The CLP Power Senior Director – Commercial, Edward Chiu, said: “An offshore LNG terminal is particularly suitable for Hong Kong as it occupies no land space. The construction is also simpler, cheaper, and it takes less time to build compared to a land-based terminal, hence less impact on the environment due to its small size and remote location.”

A site selection study has already been carried out, and has concluded that the waters to the east of the Soko Islands would be the preferred location for the offshore LNG terminal. The study took marine operational safety, environmental conservation and ocean conditions into consideration. In order to examine the impact of the offshore LNG terminal on the environment (both during construction and operation), a detailed Environmental Impact Assessment (EIA) must also now be carried out.

Edited from press release by David Rowlands

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