Moscow, April 19 - Neftegaz.RU. CLP Power Hong Kong Limited (CLP Power) and The Hongkong Electric Co., Ltd (HK Electric) announced that a Floating Storage and Regasification Unit (FSRU) vessel has successfully berthed at the new offshore liquefied natural gas (LNG) terminal in Hong Kong watersfollowing the completion of checks and clearance procedures.
Final preparations are being made for the terminal to go into operation in mid-2023 as an initiative by the two power companies to help increase low-carbon power generation and support Hong Kong’s energy transition.
CLP Power Managing Director Mr T.K. Chiang said:
- CLP Power has adopted a fuel diversity strategy since early 1990s for supply reliability, competitive cost and environmental benefits;
- to complement HKSAR Government’s energy policy, we have substantially increased the proportion of natural gas in our fuel mix to around 50% since 2020;
- natural gas is a transition fuel that supports Hong Kong’s journey towards its 2050 carbon neutrality target by lowering the carbon intensity of power generation;
- planning and construction of the offshore LNG terminal began a few years ago which underlines the importance of longterm planning to the energy industry;
- it also demonstrates our commitment to reduce the carbon intensity of our electricity supply and contribute to the sustainable development of Hong Kong;
- this facility, once commenced, will further enhance the diversity of our gas supply sources, giving us additional flexibility and supply security to utilise more natural gas for power generation.
HK Electric’s Managing Director, Mr Wan Chi-tin said:
- HK Electric strives to help Hong Kong achieve carbon neutrality before 2050 and has been switching from coal-fired to gas-fired generation as a transitional decarbonisation measure;
- the commissioning of the gas-fired unit L11 in 2022 at Lamma Power Station (LPS) enabled us to generate over half of our electricity from natural gas;
- another gas-fired unit, L12, is expected to commence operation in early 2024, which will further increase the share of natural gas in our fuel mix;
- the offshore LNG terminal, once in operation, will enhance the security and cost competitiveness of gas supply, enabling more reliable power generation by LPS;
- this will benefit our customers and contribute to the sustainable development of Hong Kong.
The offshore LNG terminal in the south-western waters of Hong Kong is first of its kind in the city.
It has been developed and constructed jointly by CLP Power and HK Electric and will be operated by the Hong Kong LNG Terminal Limited (HKLTL), a joint venture between the two companies.
Construction started in late 2020 and the marine jetty and subsea gas pipelines of the terminal have already been completed.
Commissioning of equipment is under way and the terminal is scheduled for operation in mid-2023.
The FSRU vessel, which will be named Bauhinia Spirit, is the world’s largest with an overall length of 345 metres and an LNG storage capacity of 263,000m3.
HKLTL has signed a longterm time charter agreement with Mitsui O.S.K. Lines, Ltd.
The vessel will be moored at the jetty of the LNG terminal and be used to receive, store, and regasify LNG before it is supplied to CLP Power’s Black Point Power Station and HK Electric’s Lamma Power Station through two separate subsea gas pipelines.
The offshore LNG terminal will provide a long-term alternative source to meet Hong Kong’s need for fuel supply, which is crucial for enhancing the security of the city’s natural gas supply.
It will also give the two power companies direct access to international LNG markets, strengthen their ability to source competitively-priced gas, reduce fuel costs, and ultimately benefit customers and Hong Kong as a whole.