New offshore LNG terminal running smoothly: director

The head of Hong Kong’s new offshore LNG terminal said on Monday that it has been running smoothly since it opened in July, with the first ships carrying liquefied natural gas (LNG) having docked already.

The terminal, in the SAR’s southwestern waters, uses Floating Storage and Regasification Unit (FSRU) technology to convert LNG into natural gas that is then delivered to the territory’s two power companies via subsea pipelines.

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Terminal director Daman Lee said the FSRU vessel, known as the Bauhinia Spirit, has an LNG storage capacity of around 263,000 cubic metres. He said the project gives the territory access to more diverse power sources, enhancing gas supply security.

“The plan is that at the early stage, we only need one shipment per around a month. So from July to the end of the year, the company is actually intending to actually have shipped six shipments altogether this year,” he said.

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Lee added that using LNG paves the way to achieving net zero emissions under the government’s 2050 Climate Action Plan. He said the amount of carbon dioxide emitted by natural gas is nearly half that given off by coal.

“LNG will be kind of considered as an intermediate step. LNG is not carbon free. It has less carbon than coal but it is not free of carbon, so the future that everybody is talking about carbon neutral and enhanced LNG will not be the ultimate solution,” he said.

Lee also said the technology is sustainable, even when there are extreme weather conditions.

“For typhoons, we have an initial review very early on, even before the typhoon signal is up. Usually by typhoon signal number three, the FSRU will leave Hong Kong, but that is not a definite decision. The captain will look at the situation, take into account the Hong Kong Observatory’s report, and then make a decision to leave at a certain time.”

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