Letter to the Editor of SCMP - Response to article "Experts express concern over gas deal"
Letters to the Editors
I write in response to the article "Experts express concern over gas deal" dated 14 September 2008.
It is unfair to suggest that the Government has agreed to any terms with regards to Mainland gas companies that are not made public to the people of Hong Kong. The Memorandum of Understanding (MoU) on energy co-operation, concluded between the HKSAR Government and the National Energy Administration on 28 August 2008, is a public document. It has provided a guarantee on the continuous supply of clean energy including natural gas to Hong Kong in the coming two decades. Under the MoU, the Central People¡¦s Government provides assurance on 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 be over and above the current level.
We have stressed from the outset that the purpose of the MoU for the enhanced collaboration amongst enterprises is one of facilitation. As stated clearly in the MoU, the detailed arrangements for supplying natural gas to Hong Kong, including pricing, should be worked out on commercial principles between the relevant enterprises on both sides. It is up to the enterprises concerned, and not the Government, to negotiate the prices of the gas supply under the MoU.
For Hong Kong, the private sector is best placed to meet our energy requirements in response to market demands. For more than a decade, local power companies have been sourcing supply of natural gas from the Mainland based on commercial principles. Future collaboration between energy enterprises across the border will continue to adhere to these principles.
With such solid backing and assured multiple sources of gas supply, it begs the question why Hong Kong consumers should be asked to pay for an LNG terminal at Soko. We welcome the decision of CLP Power Hong Kong Ltd to abandon its plan of building an LNG terminal in Hong Kong. The Government stands ready to provide every assistance towards realizing the goals in the MoU.