Plant's gas use below forecasts

The Chinese company that supplies natural gas to the only power plant in Hong Kong using the fuel says consumption has fallen well short of expectations.

Under the take-or-pay terms of the contract, the Black Point power station's operator could be liable to pay the China National Offshore Oil Corp (CNOOC) for gas it did not use.

The plant is run by Castle Peak Power Co (Capco), which is 40 per cent owned by China Light & Power Co and 60 per cent by Exxon Corp of the United States.

CNOOC vice-president Chen Bingqian said the company had supplied between 1.8 billion and 1.9 billion cubic metres of gas to Capco last year.

The contract was for 2.9 billion cubic metres.