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LCQ16: Guangdong Nansha Integrated Oil Refinery and Petrochemical Project
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     Following is a question by the Hon Audrey Eu and a written reply by the Secretary for the Environment, Mr Edward Yau, in the Legislative Council today (March 4):

Question:

     It has been reported that the Guangdong provincial authorities, the China Petroleum and Chemical Corporation, and the Kuwait National Petroleum Company are planning to cooperate in implementing the Guangdong Nansha Petrochemical Integration Project, and the Project may bring about regional environmental and social impact on the Pearl River Delta (PRD) Region. In this connection, will the Government inform this Council:

(a) whether it has approached the Guangdong provincial authorities to ascertain the latest situation of the aforesaid Project, including the impact assessment of the proposed oil refining facilities on the environment of the neighbouring cities; if so, of the details; if not, the reasons for that;

(b) of the protocol which it will follow in expressing its concern about the Project through different levels of communication channels between the Governments of Guangdong and Hong Kong; and

(c) given that the Governments of Guangdong and Hong Kong had agreed in August last year to jointly map out a strategy to transform "the Greater PRD Region into a green quality living sphere", whether the relevant discussions will include the impact of the aforesaid Project on the environment?

Reply:

President,

     My reply to the three parts of the question is set out below:

(a) The proposed Guangdong Nansha Integrated Oil Refinery and Petrochemical Project (proposed Project) was first put forward by the Kuwait National Petroleum Corporation in 2005. The Guangzhou Municipal Government subsequently commissioned studies on the proposed Project to assess, inter alia, the potential environmental impacts of the Nansha District Development Plan (which included the proposed Project) on the city and its vicinity. The environmental impact assessment (EIA) was conducted by the Institute of Environmental Sciences of Beijing Normal University. A draft summary report was subsequently published at the Guangzhou Municipal Environmental Protection Bureau's website in 2006. The Environmental Protection Department has been aware of the findings of the report.

(b) The Environmental Protection Department has been closely following the development of the proposed Project as well as the potential environmental impact that it might have on Hong Kong. In this regard, we had written to the relevant government authority in Guangdong to express our concerns over the proposed Project's impact on regional environment. We have also followed up the matter at meetings of the Special Panel on Pearl River Delta Air Quality Management and Monitoring, which was set up under the Hong Kong-Guangdong Cooperation Joint Conference.

     According to the Guangdong Provincial Environmental Protection Bureau, the Guangdong Provincial Government has adopted stringent environmental protection requirements on development and planning of new petrochemical projects. For instance, new oil refinery and petrochemical development projects have to undergo the EIA process and are subject to other relevant statutory and approval requirements. Project approval would only be granted when all the environmental protection and other requirements are met. As far as we understand, the EIA of the proposed Project has yet to be approved.

(c) Building on the past collaborative efforts in environmental protection, Guangdong, Hong Kong and Macau seek to explore cooperation in wider areas under the strategy of transforming the Greater Pearl River Delta (PRD) Region into a green and quality living area. Considerations will be given to, for example, researching into and promoting a wider use of clean and renewable energy; promoting the development of circular economy; enhancing cleaner production in the region; and mapping out an air emission reduction arrangement to further improve the regional air quality. This initiative will help enhance the overall competitiveness and quality of life of the whole region. As for individual projects in each place, such as the proposed petrochemical project under question, they will continue to be considered and approved by the respective governments in accordance with relevant local regulations and requirements. The governments of the three places will, where necessary, liaise with each other to consider the relevant issues.

Ends/Wednesday, March 4, 2009
Issued at HKT 14:04

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