Following is a question by the Hon Lee Chun-keung and a reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (March 25):
 
Question:
 
     It is reported that ongoing tensions in the Middle East have led to a rise in international oil prices, bringing heavy operational pressure on Hong Kong's sea, land and air transport, passenger services and logistics trades. In this connection, will the Government inform this Council:
 
(1) whether it has compiled statistics on the current respective sources of supply for liquefied petroleum gas and liquefied natural gas in Hong Kong; if so, of the details, and whether the supplies are stable;
 
(2) whether there are measures in place in Hong Kong to safeguard its energy supply; if so, of the details; if not, the reasons for that; and
 
(3) of the measures in place to assist the local sea, land and air transport, passenger services and logistics trades in coping with the impact of the recent rise in international oil prices and to ensure an adequate long-term supply of critical commodities such as energy?
 
Reply:
 
President,
 
     Stable energy supply is critical to Hong Kong's economic and social operations. Public transportation, air passenger and cargo services, and electricity supply, etc, are directly related to energy supply. The situation in the Middle East is affecting global oil supply, with the impact on Asia being particularly pronounced. The top priority of the Government is to ensure the stability of Hong Kong's energy supply.
      
     Hong Kong has no local energy resources. Apart from a small amount of renewable energy, Hong Kong must rely on imported fuels. These include direct import (such as oil products), and those processed in Hong Kong after importation (such as electricity and town gas). Currently, around 80 per cent of Hong Kong's oil products came from the Chinese Mainland. Hong Kong has weathered several global energy crises in the past, including those triggered by the Gulf War and the Ukrainian conflict, which remain fresh in the minds of many. With the advantage of enjoying strong support from the motherland, Hong Kong has been able to maintain a stable energy supply amid the emergence of energy shortages in many regions and cities around the world.
      
     In view of the latest situation in the Middle East, the Environment and Ecology Bureau (EEB) met with local major auto-fuel suppliers last week to reiterate the importance of energy for Hong Kong's economic and social operations. It has urged the suppliers to ensure a stable supply of local auto-fuel. All the suppliers have indicated that the supply of local auto-fuel is normal, and that they will continue to strive to maintain a stable supply.
      
     The EEB also confirmed with the two power companies and The Hong Kong and China Gas Company Limited (the Towngas Company) that fuel supplies for electricity and town gas production remain normal. Given the challenges posed to global energy supplies by the current tensions in the Middle East, which are affecting every corner of the world and every sector of the economy, we must all remain vigilant and work together to address this situation. The Government will continue to closely monitor the geopolitical developments and the local fuel supply situation to ensure the stability of Hong Kong's energy supply.
      
     In response to the question raised by the Hon Lee Chun-keung, in consultation with the Transport and Logistics Bureau (TLB), our reply is as follows:
 
(1) and (2) As mentioned above, Hong Kong mainly relies on imported fuel, with around 80 per cent of the oil products coming from the Chinese Mainland. Leveraging the advantage of having the motherland's staunch support, the Government has confirmed with all major energy companies that Hong Kong's energy supply remains stable at present.
 
     Natural gas is primarily used for electricity generation and town gas production in Hong Kong. There are six subsea natural gas pipelines in Hong Kong, including those connecting the Chinese Mainland to the two power companies and the Towngas Company, as well as those connecting the Hong Kong Offshore Liquefied Natural Gas (LNG) Terminal (the Terminal) to the power stations of the two power companies. The floating storage and regasification unit (FSRU) vessel berthed at the Terminal is currently the largest facility of its kind in the world.
      
     Currently, the natural gas supply in Hong Kong remains stable. In the event that the supply of LNG by sea is disrupted by the situation in the Middle East, the two power companies have already formulated contingency plans to adjust their fuel mix (including pipeline natural gas, nuclear power, and coal) as necessary to maintain stable electricity generation. As for town gas supply, the Towngas Company also indicated that if the supply of natural gas is disrupted, they can maintain supply by adjusting the fuel blend ratio to use more naphtha for town gas production.
      
     In terms of liquefied petroleum gas (LPG), the majority of Hong Kong's LPG is used as transport fuel, mainly for taxis and minibuses. Currently, LPG supplies are mainly sourced from neighbouring cities in the Guangdong-Hong Kong-Macao Greater Bay Area, including Zhuhai, Dongguan and Shenzhen, with suppliers arranging for LPG tankers to transport the fuel from the Chinese Mainland to Hong Kong. The LPG suppliers have also indicated that supplies remain normal at present.
 
(3)  The Government is very concerned about the impact of rising international oil prices on Hong Kong's transport and freight industries. In respect of public transport services, the Transport Department (TD) has been maintaining close communication with different public transport operators in view of the recent hike of international oil prices, including franchised buses, public light buses, taxis and ferries, to understand how their operations are impacted. Given the uncertainty of the future trend of oil prices, the TLB and the TD will continue to closely monitor the development to ensure that the operation of public transport services remain normal. The Government will also maintain close contact with the land freight transport sector.
 
     On the aviation side, several local and non-local airlines have at different times adjusted airfares or raised their fuel surcharges in response to the elevated aviation fuel prices. The TLB is paying close attention to the development, and has already met with local airlines to express its concerns regarding the magnitude of cargo fuel surcharge increases, and emphasise the importance of maintaining the competitiveness of the Hong Kong International Airport. We have also requested the airlines to strengthen communication with the freight industries, and arranged relevant stakeholders to meet to allow airlines to explain to the trade the basis and rationale for setting cargo fuel surcharge levels, with a view to enhancing transparency. The Government will closely monitor airlines' adjustments to cargo fuel surcharges to ensure that the process is reasonable and transparent.
      
     On the maritime front, sustained elevation of global oil prices will put pressure on the operating costs of the maritime industry. Hong Kong Port (HKP), as a free port, has long enjoyed advantages including swift customs clearance, high efficiency, and strong international connectivity. With congestion at other ports, HKP can play an active role in cargo diversion. The Government will maintain communication with the industry to ensure the smooth operation of HKP and maintain its international competitiveness.
      
     The energy supply in Hong Kong remains to be stable. The Government will remain vigilant and closely monitor the geopolitical developments, international energy price trends and the local fuel supply situation to ensure the stability of Hong Kong's energy supply. Around 80 per cent of oil products in Hong Kong came from the Chinese Mainland, the EEB will continue to liaise with the relevant Chinese Mainland authorities to support the stable supply of major fuel products to Hong Kong.

Ends/Wednesday, March 25, 2026
Issued at HKT 15:02

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