The news source quoted a CLP spokesperson as saying that the company will not pursue its plan to build a liquefied natural gas (LNG) terminal on the South Soko Island.
Environmental groups who were critical of the facility’s impact on the marine ecosystem around the Soko and Lantau islands have welcomed the announcement. CLP had planned to replace the depleting natural gas volumes from the South China Sea and sought the Hong Kong government’s approval for the terminal.
Hong Kong had signed an initial agreement with China in August 2008 for the supply of energy to the city for an additional 20 years. Pursuant to this agreement, an LNG terminal is expected to be jointly built on the mainland to supply gas volumes to Hong Kong. This agreement has potentially negated the need for an LNG terminal to be built on the South Soko Island.
Richard Lancaster, CLP’s commercial director, said that the company is seeking to invest in the regasification plants planned by PetroChina and the China National Offshore Oil Corporation (CNOOC) in the Chinese province of Guangdong. Mr Lancaster also said that CLP is in negotiations to source gas from PetroChina’s Turkmenistan-to-Shenzhen pipeline and CNOOC’s South China Sea gas fields.
