Hong Kong power firms unveil offshore LNG terminal, environmentalists raise concerns over carbon reduction potential, impact on energy bills

Hong Kong's two power companies, CLP Power and HK Electric, have introduced the city's first offshore liquefied natural gas (LNG) terminal. This facility has been operational since July. However, environmentalists have expressed concerns about its ability to reduce carbon emissions and its potential impact on electricity bills. Daman Lee, the director of the terminal project, stated that the 345-by-55 metre facility could supply power to 1. 5 million three-member households for two months. The terminal is a collaborative effort by CLP Power and HK Electric to replace coal for electricity generation.

Lee highlighted that the terminal's storage capacity is the largest in the world. Natural gas is transported to Hong Kong through two methods: using extensive pipelines or bulk delivery, where the gas is first liquefied for more convenient transport. Lee explained that this method enhances the flexibility, stability, and price competitiveness as it is not restricted by a rigid pipeline. The procurement contracts for the terminal were signed before the conflict between Russia and Ukraine erupted in February last year.

The terminal, stationed in the waters to the east of the Soko Islands, has a capacity of 263,000 cubic metres, equivalent to the volume of about 100 Olympic-sized swimming pools. It is equipped with a double-berth jetty to offload the LNG, storage tanks, and facilities to convert it back to gas. The natural gas is then transported using a 45km and 18km underwater pipeline to CLP Power’s generating station in Lung Kwu Tan and HK Electric’s plant on Lamma Island, respectively.