Clear The Air Energy Blog Rotating Header Image

Expert Backs Soko LNG Terminal Plan

Timothy Chui, SCMP – Tuesday, September 09, 2008

The territory’s power supply will be more secure if a planned liquefied natural gas terminal on the Sokos Islands goes ahead, according to an energy expert.

“We can have complete control on how much to buy and how much to pay,” director of Hong Kong Baptist University’s Energy Studies Centre Larry Chow Chuen-ho said.

Chief Executive Donald Tsang Yam-kuen signed a memorandum of understanding with Zhang Guobao, the head of the mainland’s National Energy Administration, late last month to extend the supply of nuclear and natural gas energy to the territory for two decades.

An LNG terminal would also insulate Hong Kong from supply disruptions from the mainland, Chow told Sunday’s City Forum.

Chow said CLP in 2003 used more coal in power generation to make up for a shortfall in LNG, as China National Offshore Oil Corp was not able to sell as much that year. However, Chow was confident the mainland would keep its end of the bargain.

Pointing out that the supply payment contract between Hong Kong and CNOOC’s contract was based on an agreement made in the early 1990s, he speculated that the corporation was not happy to be locked in at lower rates.

Secretary for the Environment Edward Yau Tang-wah said the power deal “diminished” the need to build a local LNG terminal. He hinted the likelihood the government would approve the late-stage plan was “much reduced.”

Yau said a 16-kilometer pipeline from Shenzhen would be much cheaper than CLP’s HK$10 billion proposal for a 38km pipeline to South Soko Island.

Comments are closed.