CLP Group Sees Need for LNG Terminal Offshore Hong Kong
CLP Group, one of the largest investor-owned power businesses in Asia Pacific, is actively seeking alternatives to diversify its gas source to secure Hong Kong’s energy security.
“The recent landslide incident in Shenzhen has highlighted the vulnerability of Hong Kong’s energy security and provided a clear message that further action is needed to diversify our fuel sources. With that in mind, CLP is actively seeking alternatives to diversify our sources of gas,” said Michael Kadoorie, Chairman of CLP Holdings, the holding company for the CLP Group, while addressing company’s annual general meeting on Thursday.
LNG terminal offshore Hong Kong
As Hong Kong sees greater reliance on gas to meet local power generation needs, guarantee of stable and secure supply is extremely important. Kadoorie said one option that makes sense is to develop an offshore liquefied natural gas (LNG) terminal.
This would enable CLP, along with other large users of natural gas in Hong Kong, to access international supplies of LNG not only as alternative physical supply option, but also as an alternative commercial option to secure the most competitive source of gas, he said.
Orderly transition towards to low carbon generation environment
Keeping government’s emphasis on carbon footprint reduction in mind, CLP is working towards an orderly transition to low carbon generation environment. The company is working towards cutting carbon emission intensity of its generation portfolio by 75 percent by 2050.
According to Kadoori, renewable business now accounts for over 17 percent of CLP’s total generation capacity. “Building on that, our group investment strategy targets half of the capital we invest outside Hong Kong towards renewables.”
CLP has also proposed building an additional gas-fired generation unit. It will allow the company to further reduce coal based generation and achieve significant reductions in emissions from operations in Hong Kong.
Outside Hong Kong, CLP holds investment in the energy sector in Mainland China, India, Southeast Asia, Taiwan and Australia. Its diversified portfolio of generating assets uses a wide range of fuels including coal, gas, nuclear and renewable sources.