CLP Power Hong Kong on Saturday informed it is taking forward the development work to build an offshore LNG terminal in Hong Kong waters.
The proposal comes as a response to the government’s policy to increase the use of natural gas in power generation by 2020, the company said in a statement.
To further study whether the proposed project can serve as a potential gas supply option to meet Hong Kong’s future fuel supply needs, CLP Power and the Hongkong Electric have agreed to jointly explore the feasibility of siting an offshore LNG import terminal in Hong Kong waters based on the floating storage regasification technology.
Currently, the Second West-East gas pipeline and gas sources in the South China Sea via subsea pipelines are the main sources of natural gas for CLP Power.
The proposal has been submitted to the Environmental Protection Department, the utility, a unit of CLP Holdings said.
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.”
Waters east of the Soko Islands have been selected as the preferred location for the terminal and a detailed environmental impact assessment study will be carried out to examine the impacts of the offshore LNG terminal on the environment and marine ecology during the construction and operation phases.