Letter to the Editor of SCMP - Response to letter headlined "Will HK's gas pipeline really clean our skies?"

Letters to the Editors

Letter to the Editor of SCMP - Response to letter headlined "Will HK's gas pipeline really clean our skies?"

I write in response to the letter headlined "Will HK’s gas pipeline really clean our skies?" on 5 September 2008 by Mr Bill Barron and Mr Alexis Lau.

Regarding the concern of Mr Barron and Mr Lau on the level of gas supply (that 1 billion cubic metres of gas will be provided to Hong Kong per year, which is less than 40% of what CLP Power is getting from the Yacheng field), you would note from the below that under the MoU, CPG guaranteed the supply of natural gas from three sources, i.e. offshore gas, piped gas and an LNG terminal to be jointly built in the Mainland. The future level of gas supply to Hong Kong will, as a result, be over and above the current level, and the need for Hong Kong to build a LNG terminal within its territory will be greatly reduced. Hong Kong can also benefit from improved air quality by increasing the use of clean energy and reducing the emission of power plants.

The Chief Executive signed a Memorandum of Understanding (MoU) with Mr. Zhang Guobao, Vice-Chairman of the National Development and Reform Commission and Administrator of the National Energy Administration on 28 August 2008 on the continuous supply of nuclear electricity and natural gas to Hong Kong in the coming two decades. According to the MoU:

(a) Central People's Government (CPG) supports the China National Offshore Oil Corporation to renew its supply agreement to Hong Kong for a further term of 20 years based on the current gas supply level;

(b) it was also agreed in principle that the feasibility of supplying natural gas to Hong Kong via the Second West-East Natural Gas Pipeline will be studied and the annual gas supply will not be less than one billion cubic metres, which is an additional source over and above the current level of supply;

(c) a liquefied natural gas (LNG) terminal will be jointly built in the Mainland for supply to Hong Kong. The supply quantity will be negotiated between the enterprises on both sides based on commercial principles.

Trust that the above information could address the points raised in the aforesaid letter.

Katharine CHOI
for Secretary for the Environment