Floating LNG processing plant will enhance gas supply security and cut costs, CLP says
Offshore plant for regasifying imported LNG would occupy less than a hectare of sea area
CLP Holdings’ proposed floating gas processing plant off Lantau – its second proposal in 10 years to import liquefied natural gas (LNG) – will cost less and result in “much less” environmental impact than its proposed US$10 billion onshore plant rejected by the Hong Kong government in 2008, the company’s chief executive, Richard Lancaster, said on Thursday.
Speaking after the annual shareholders’ meeting of the sole power supplier for Kowloon, the New Territories and Lantau Island, Lancaster said the plant would give CLP direct access to overseas supply of natural gas, which was cleaner-burning than coal.
We think this is a very good solution for Hong Kong
“The floating liquefied natural gas terminal has much less environmental impact, [costs] much less, and will not need to take up land ... we think this is a very good solution for Hong Kong,” he said, adding the technology was mature, with more than 20 floating plants in operation around the world.
CLP Power Hong Kong vice-chairman Betty Yuen So Siu-mai said the project might bring consumers savings on fuel costs – the biggest source of power generation costs – given currently depressed oil and gas prices.
Planning for the proposed plant was at an early stage, and CLP had yet to conduct an environmental impact assessment, Lancaster said.
Diversifying its gas sources is part of CLP’s strategy to reduce supply risk and enhance its bargaining position with suppliers.