CLP Power says facility should be finished by 2011 The proposed liquefied natural gas terminal will cost CLP Power up to $6.5 billion to build, the electricity supplier revealed yesterday. But it said it was too early to speculate on how the massive investment would affect or be affected by the continuing review of the power sector's regulatory regime. The terminal, to be built either on South Soko Island or at Black Point, will serve to replace the gas supply for power generation from the shrinking reserve in Hainan . The facility is expected to be completed by 2011. Environmental impact studies on the two sites are being conducted. CLP Holdings commercial director Richard Lancaster said the terminal would cost $4 billion to $6.5 billion. If Soko Island is chosen, 10 per cent to 20 per cent of the estimated cost will be spent on a 40km underwater pipeline. Mr Lancaster said a quick start to the project was needed if the city wanted to use more gas for power generation in the medium term as its Hainan gas supply diminishes. 'If the facility could be completed earlier, we could take the gas [from Hainan] at a faster pace,' he said, without offering details on the remaining gas stock. The power supplier cut its gas intake drastically in 2003 after it found the reserve was smaller than previously anticipated. Although CLP Power has pledged it would 'significantly increase' the use of gas for power generation once the new facility was constructed, it has so far declined to disclose how that could be achieved. When asked if the gas stored in the terminal would be solely for local power generation, Mr Lancaster said CLP Power may consider other uses for the gas.