Floating storage unit could supply natural gas to Hong Kong
Regarding the future fuel mix in Hong Kong, I would suggest the SAR does not import all its gas from the mainland but tries to diversify supply sources.
Regarding the future fuel mix in Hong Kong, I would suggest the SAR does not import all its gas from the mainland but tries to diversify supply sources.
Although a proposed land-based liquefied natural gas terminal was shelved in 2008, Hong Kong should explore the possibility of LNG imports which are based on a floating storage and regasification unit. This is a more cost-effective way to enhance supply security.
Many units in use today were converted from used LNG carriers, so most of the facilities, like pipes, pumps and storage tanks, can be redeployed in them. The conversion is mainly to retrofit regasification facilities onto a carrier, reducing the capital cost to less than 50 per cent of a land-based one. The work takes around 24 months, compared to 48 months for a land-based facility.
For these reasons, such a unit is considered a cost-effective solution to meet urgent gas demand and strengthen energy security by gas source diversification.
Another economic advantage is less upfront investment. The gas buyer does not necessarily own the unit, but charters it for a period of time. When the charter expires, the buyer can renew it or the unit sails off to another destination.
These units are used worldwide, with 14 in operation and more than 30 projects being planned or under construction. The first one began operating in Brazil in 2008. Last year, China started up its first unit in Tianjin . This year, a new unit will be commissioned in Indonesia.
A floating storage unit could present a cost-effective way to increase Hong Kong's gas proportion to 60 per cent of the fuel mix and strengthen its energy security by diversifying gas sources.
It would also suit this land-constrained city. It could be moored at the jetty of a power plant or a specially built platform off the plant.
Government support is a key factor for such projects. Floating storage units in Lithuania, Ghana, and Ivory Coast are driven by governments wanting a more economical, secure and sustainable energy supply.
