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    HK's 1st offshore LNG import terminal to begins ops mid-2023


The terminal is being developed by CLP Power and HK Electric. [Image: CLP Power/HK Electric]

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Gas to Power, Corporate, News By Country, Hong Kong

HK's 1st offshore LNG import terminal to begins ops mid-2023

Hong Kong’s first offshore LNG import terminal will go into operation in mid-2023, CLP Power and HK Electric, who are jointly developing the project, said on April 18.

The companies said that a floating storage and regasification unit (FSRU) vessel has successfully berthed at the new offshore LNG terminal in Hong Kong waters following the completion of checks and clearance procedures. The arrival of the FSRU in Hong Kong was announced by the companies on April 13.

“Final preparations are being made for the terminal to go into operation in mid-2023 as an initiative by the two power companies to help increase low-carbon power generation and support Hong Kong’s energy transition,” they said.

The FSRU, which will be named Bauhinia Spirit, is the world’s largest with an overall length of 345 m and a storage capacity of 263,000 m3 of LNG. It will be moored at the jetty of the offshore LNG terminal and be used to receive, store, and regasify LNG.

The offshore LNG terminal will be 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 vessel will be moored at the jetty of the LNG terminal and be used to receive, store, and regasify LNG before it is supplied to CLP Power’s Black Point power station and HK Electric’s Lamma power station through two separate subsea gas pipelines.

“Natural gas is a transition fuel that supports Hong Kong’s journey towards its 2050 carbon neutrality target by lowering the carbon intensity of power generation,” said CLP Power managing director T.K. Chiang.

HK Electric’s managing director Wan Chi-tin said, “HK Electric strives to help Hong Kong achieve carbon neutrality before 2050 and has been switching from coal-fired to gas-fired generation as a transitional decarbonisation measure.”

The commissioning of the gas-fired unit L11 in 2022 at the Lamma power station enabled HK Electric to generate over half of our electricity from natural gas. Another gas-fired unit, L12, is expected to commence operation in early 2024, which will further increase the share of natural gas in our fuel mix.