Hong Kong's first LNG terminal opens amidst uncertainty regarding LNG bunkering for OGVs

CLP Power Hong Kong Limited (CLP Power) and The Hongkong Electric Co., Ltd (HK Electric) last week held a closed-door opening ceremony for the Hong Kong LNG Terminal, marking a new chapter in low-carbon power generation, some seven years after CLP Power first made its application.
 

The ceremony was officiated by the Chief Executive of the HKSAR the John Lee, Secretary for Environment and Ecology Tse Chin-wan, CLP Holdings chairman Sir Michael Kadoorie and CK Hutchison Holdings Limited chairman Victor TK Li.
 

Speaking at the ceremony, Sir Michael Kadoorie said, “The construction of the offshore LNG terminal took place in the midst of the pandemic, exemplifying Hong Kong’s engineering prowess and our city’s can-do spirit. Being the first of its kind in Hong Kong, the offshore LNG terminal bears great significance in supporting the city’s energy transition to achieve carbon neutrality by 2050.”
 

He added, “CLP Power and HK Electric have been serving Hong Kong for over a century. This new terminal signifies a proud collaboration between us to support Hong Kong’s energy development. We would like to take this opportunity to express our greatest gratitude to the many parties who helped make this engineering wonder possible – our business partners, marine experts, engineers, technicians, construction workers, and HK Electric and CLP Power colleagues. Our thanks also go to the Hong Kong SAR Government for developing visionary environmental policies that galvanise the collective efforts of the electricity sector and the bigger community, and to different government departments for facilitating the construction of this rather complicated project.”
 

Chief Executive of the HKSAR John Lee said, “A secure and stable energy supply not only supports the smooth operation of society but also serves as the foundation for high-quality economic development.” He described the significance of the completion and official operation of the offshore LNG terminal as being three-fold: 
 

“During the construction phase, the project team encountered significant challenges, including adverse weather conditions, the pandemic, and fairway design etc. Through collective efforts, they successfully overcame these obstacles and completed the project.” He expressed, “This spirit of unity and collaboration to build Hong Kong together is precisely the ‘Bauhinia Spirit’ that we take pride in.”
 

Furthermore, chief executive Lee highlighted the potential synergies between the offshore LNG terminal and maritime development, which can contribute to strengthening Hong Kong’s position as an international maritime hub. 
 

“The Government has established a joint working group to facilitate the supply of LNG to ocean-going vessels in Hong Kong, including exploring the use of this newly completed terminal for vessel refuelling.”
 

While the chief executive’s comments offer a measure or reassurance to those members of the maritime industry who consider a facility for ship-to-ship LNG bunkering essential, further details and a timeframe would be highly desirable for the maritime community which has for months been rife with rumour both positive and negative regarding the project.

He further pointed out, “Energy crises and supply constraints caused by international geopolitical factors bring uncertainty to energy security and stability. This terminal diversifies and enhances the reliability of Hong Kong’s gas supply while enabling power generation to reduce emissions.”

 

Jointly developed and constructed by the two power companies since 2020, Hong Kong Offshore LNG Terminal is located to the east of the Soko Islands and went into service in July 2023. The Bauhinia Spirit is the world’s largest FSRU vessel and has an LNG storage capacity of 263,000 cubic metres. It is moored at the jetty of the terminal to receive, store, and regasify LNG before the natural gas is sent by two separate subsea pipelines to CLP Power’s Black Point Power Station and HK Electric’s Lamma Power Station.
 

The terminal gives the power companies direct access to international LNG markets and provides a long-term alternative fuel source to meet Hong Kong’s generation needs. It also strengthens the companies’ supply reliability, and ability to source competitively-priced gas for the benefit of customers and Hong Kong as a whole.

Source: Hong Kong Maritime Hub

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