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The Chief Executive Mr Donald Tsang reached a consensus with Vice-Chairman of the National Development and Reform Commission (NDRC) and Administrator of the National Energy Administration Mr Zhang Guobao today (August 28) on the continuous supply of nuclear electricity and natural gas to Hong Kong in the coming two decades. The consensus was marked by the signing of a Memorandum of Understanding (MoU).
The Chief Executive said at the signing ceremony that electricity generation was a major source of pollution in Hong Kong. The HKSAR Government had been pursuing the replacement of coal with cleaner sources of electricity generation for better air quality.
"The sustained supply of clean energy from the Mainland will greatly reduce the need for Hong Kong to build a liquefied natural gas (LNG) terminal within its territory. The resulting reduction in capital investment by the power company concerned will relieve the pressure for electricity tariff increases," Mr Tsang said. "The HKSAR can also benefit from improved air quality by increasing the use of clean energy and reducing the emissions of power plants."
According to the MoU, the Central People's Government (CPG) supports the China Guangdong Nuclear Power Holding Co Ltd. to renew its supply agreement with Hong Kong for a further term of 20 years. The quantity of electricity supply will be no less than the current level in principle.
On the supply of natural gas, the CPG supports China National Offshore Oil Corporation's renewal of its supply agreement with Hong Kong for a further term of 20 years.
Furthermore, it was agreed in principle that the feasibility of supplying natural gas to Hong Kong via the Second West-East Natural Gas Pipeline would be studied, and that the CPG would jointly build with Hong Kong an LNG terminal on the Mainland for supplying natural gas to Hong Kong. Detailed arrangements for supplying natural gas and electricity to Hong Kong, such as pricing and supply quantity, will be worked out on commercial principles between the relevant enterprises on both sides.
The Chief Executive proposed to Premier Wen Jiabao and leaders of the NDRC in November last year continuing the supply of natural gas by the Mainland to Hong Kong. The proposal was thereafter followed up by both sides, and consensus was reached today at the meeting between the Chief Executive and Vice-Chairman Zhang Guobao.
The Chief Executive expressed at the ceremony his heartfelt gratitude for the CPG's support of the HKSAR. He was particularly thankful to the NDRC for its significant contribution in furthering energy co-operation between the Mainland and Hong Kong.
Ends/Thursday, August 28, 2008
Issued at HKT 17:38
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