CLP Group Signs Gas Purchase Deal with CNOOC

CLP Group, the Hong Kong-based power utility has signed a gas purchase deal with CNOOC.

CNOOC will supply the gas from the Wenchang gas field in the South China Sea using the existing Yacheng pipeline. Gas flow is expected to commence in 2018.

CNOOC will build a 33-kilometre pipeline to connect the Wenchang gas field to the existing gas pipeline which links the Yacheng gas field to the Black Point power station, CLP said in a statement, adding that the cost of bringing in this new gas supply has been kept low because CLP Power does not need to build any additional infrastructure.

CLP Power started importing natural gas from Yacheng for power generation 20 years ago. With the gradual depletion of the Yacheng gas field, CLP Power has imported natural gas from a small gas field near Yacheng since 2012, and introduced in 2013 natural gas from the Second West-East Gas Pipeline, one of the three new gas sources specified in the Memorandum of Understanding on energy cooperation signed between the Hong Kong SAR Government and the Central Government. This will be followed by the Wenchang gas supply in 2018.