Hong Kong's CLP Power issues LNG tender for commissioning cargo
10/03/2023 07:55
SINGAPORE, March 10 (Reuters) - Power utility CLP Power
Hong Kong Ltd has issued a tender to purchase a commissioning
cargo of liquefied natural 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
natural gas supply stability by diversifying supply sources and
enable procurement of LNG from the international market at
competitive prices."
The spokesperson did not 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 natural 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.net))