Hong Kong's CLP Power issues LNG tender for commissioning cargo

Reuters · 03/10/2023 07:55
Hong Kong's CLP Power issues LNG tender for commissioning cargo

- Power utility CLP Power Hong Kong Ltd has issued a tender to purchase a commissioning cargo of liquefied gas for Hong Kong's first LNG terminal, the company said on Friday.

"CLP Power confirmed the issuance of a tender to purchase an LNG cargo for the commissioning of the offshore LNG terminal in Hong Kong which is due to go into service later this year," said a company spokesperson.

"The facility will further improve Hong Kong's long-term gas supply stability by diversifying supply sources and enable procurement of LNG from the international market at competitive prices."

The spokesperson did say if the tender has been awarded. Two industry sources said the tender, which closed on March 8, sought cargo for May delivery into the terminal.

Spot Asia LNG prices LNG-AS have slid to around $14 per million British thermal units (mmBtu), pulling back from record high values hit in August last year, making it cheaper for price-sensitive buyers in Asia.

Prices, however, are still above the single-digit levels last seen in May 2021.

The Hong Kong LNG terminal is an offshore terminal which utilises a floating storage and regasification unit (FSRU). It is critical in supporting Hong Kong's plan to increase the percentage of gas used for power generation and reduce the city's carbon intensity, according to CLP Power's website.

The terminal's shareholders are Hong Kong Electric Co. Ltd and Castle Peak Power Co. Ltd, which is 70% owned by CLP Power and 30% owned by China Southern Power Grid International (HK) Co., Ltd.

CLP Power is a wholly-owned subsidiary of CLP Holdings Limited 0002.HK.

(Reporting by Emily Chow; editing by Eileen Soreng)

((emily.chow@thomsonreuters.com; Reuters Messaging: emily.chow.thomsonreuters.com@reuters.))