HK's 1st LNG import terminal enters service
CLP Power Hong Kong (CLP Power) and The Hongkong Electric Co. (HK Electric) on July 13 announced the operational launch of Hong Kong's first offshore LNG terminal following the arrival of the first cargo under a long-term deal with Shell.
The offshore LNG terminal is operated by the Hong Kong LNG Terminal, a joint venture between CLP Power and HK Electric. The joint venture has signed a long-term time charter agreement with Japan’s Mitsui O.S.K. Lines.
The floating storage and regasification unit (FSRU) vessel named Bauhinia Spirit, with a storage capacity of 263,000 m3, is now moored at the terminal. The arrival of the FSRU in Hong Kong was announced by the companies on April 13.
The LNG terminal will receive LNG shipments under a long-term supply agreement, and the regasified LNG will be sent to CLP Power's Black Point power station and HK Electric's Lamma power station.
The offshore LNG terminal provides Hong Kong with access to competitively priced natural gas from international markets, enhancing gas supply source diversity and supply security, the companies said.
The power companies signed a long-term LNG supply agreement with Shell Eastern Trading, a subsidiary of Shell, prior to the terminal's construction. With the terminal now fully operational, Shell is supplying LNG from its worldwide portfolio to CLP Power and HK Electric. The first shipment of around 139,000 m3 of LNG is sufficient to meet the monthly electricity needs of around 1.5mn residential households in Hong Kong, the companies said.