Hong Kong joins the LNG importer ranks [Gas in Transition]

Hong Kong joins the LNG importer ranks [Gas in Transition]

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Natural Gas News
Hong Kong joins the LNG importer ranks [Gas in Transition]

Summary

The launch of Hong Kong’s first LNG terminal in July will see the city lean on imported gas to shore up its energy security and accelerate decarbonisation, but the fuel is not a long-term solution for local net-zero goals. [Gas in Transition, Volume 3, Issue 8] by: Shi Weijun

Hong Kong’s formal launch of its maiden LNG terminal this summer represents a long-awaited embrace of the cleaner-burning fuel by the Asian financial hub, which is leaning on greater gas burn to underpin a drive away from coal-fired power generation. The offshore LNG terminal – the largest of its kind in the world – received its first LNG shipment under a long-term supply agreement between Shell and local power companies CLP Power Hong Kong and Hong Kong Electric, the two utilities announced on July 13. CLP Power and Hong Kong Electric own respective stakes of 49% and 30% in the project. The remaining 21% interest is owned by China Southern Power Grid, one of two state-owned grid monopolies in mainland China. Regasified LNG is now being sent to CLP Power’s Black Point Power Station and HK Electric’s Lamma Power Station, raising the low-carbon generation capability and fuel supply security of the power companies in suppo...