Regina Leung – SCMP – Updated on Aug 28, 2008
Chief Executive Donald Tsang Yam-kuen on Thursday afternoon hailed a new agreement with the mainland over the supply of electricity, nuclear power and natural gas saying it would satisfy Hong Kong energy needs over the next 20 years.
He said the new agreement would ensure Hong Kong could get stable supplies of natural gas from the mainland. This would help ease Hong Kong’s problem with air pollution.
Mr Tsang made the comments before signing a memorandum of understanding (MoU) with China’s National Energy Administration vice-chairman Zhang Guobao.
“The sustained supply of clean energy from the mainland will greatly reduce the need for Hong Kong to build a liquefied natural gas (LNG) terminal within its territory,” he said.
“The resulting reduction in capital investment by the power companies concerned will also relieve pressure for electricity tariff increases,” Mr Tsang said.
“The government could also benefit from improved air quality by increasing the use of clean energy such as natural gas and reducing emissions of power plants,” he said.
“According to the MoU, the central government’s China Guangdong Nuclear Power plant will also renew its supply agreement with Hong Kong for a further term of 20 years,” he explained.
On the supply of natural gas, the central government supports China National Offshore Oils renewal of its supply agreement with Hong Kong for a further term of 20 years.
The feasibility of supplying natural gas to Hong Kong via the second west-east natural gas pipeline would also be studied. The central government would jointly build an LNG terminal with Hong Kong in the mainland. This will supply natural gas to the territory.