1 INTRODUCTION

1.1 INTRODUCTION

This Environmental Impact Assessment (EIA) Report addresses the potential environmental impacts associated with the construction and operation of the Proposed Submarine Gas Pipelines from Cheng Tou Jiao Liquefied Natural Gas Receiving Terminal, Shenzhen to Tai Po Gas Production Plant, Hong Kong (hereinafter referred to as the Project). 

The Project is classified as a Designated Project by virtue of Item H.2 of Part I of Schedule 2 under the Environmental Impact Assessment Ordinance (Cap. 499) (EIAO). 

This report is prepared by ERM-Hong Kong, Limited (ERM) in association with Kvaerner E&C Singapore Pte Ltd and on behalf of The Hong Kong and China Gas Company Limited (Towngas), in accordance with the EIA Study Brief (No. ESB-087/2001) and the Technical Memorandum of the Environmental Impact Assessment Process (EIAO-TM).  The Study Area for the Project is presented in Figure 1.1a.

1.2 BACKGROUND

Towngas is examining the feasibility of developing a natural gas supply system from the Cheng Tou Jiao Liquefied Natural Gas Receiving Terminal (GRT), Shenzhen, People's Republic of China (PRC), to the Towngas Gas Production Plant (GPP) located in the Tai Po Industrial Estate, Hong Kong Special Administrative Region (HKSAR).  The system comprises two natural gas pipelines connecting the two sites and associated facilities consisting of a launching station at the GRT and a Gas Receiver Station at the GPP and is hereafter referenced to as the "Project".

Towngas operates the Towngas Network, which supplies gas to domestic, commercial and industrial consumers.  The gas (major components of which are hydrogen, methane and carbon dioxide) is produced at the Towngas GPP in the Tai Po Industrial Estate and is supplied through a network of transmission and distribution pipelines. 

Towngas is presently reviewing the reliability and flexibility of their existing system to meet expected future demand.  The proposed gas pipelines system would be used to supply natural gas as an alternative feedstock from the Cheng Tou Jiao GRT to produce gas at the existing production plant.

1.3 PURPOSE AND OBJECTIVES OF THIS EIA REPORT

The purpose of the EIA is to provide information on the nature and extent of environmental impacts arising from the construction and operation of the Project and related activities that take place concurrently, to contribute to decisions on:

* The overall acceptability of any adverse environmental consequences that are likely to arise as a result of the project;

* The conditions and requirements for the detailed design, construction and operation of the Project to mitigate against adverse environmental consequences wherever practicable; and

* The acceptability of residual impacts after the proposed mitigation measures are implemented.

The detailed requirements of the EIA Study are set out in the EIA Study Brief.  The objectives of the EIA Study are:

(i) To describe the Project and associated works together with the requirements for carrying out the Project;

(ii) To identify and describe elements of community and environment likely to be affected by the Project and/or likely to cause adverse impacts to the Project, including natural and man-made environment and the associated environmental constraints;

(iii) To provide information on the consideration of alternatives to avoid and minimize the potential environmental impacts, and to compare the environmental benefits and dis-benefits of each of the different options; to provide reasons for selecting the preferred option(s) and to describe the part of environmental factors played in the selection;

(iv) To identify and quantify emission sources and determine the significance of impacts on sensitive receivers and potential affected uses;

(v) To identify and quantify any potential losses or damage to aquatic organisms and natural habitats and to propose measures to mitigate these impacts;

(vi) To evaluate the potential natural gas hazards during operation of the Project and to propose measures to mitigate the impacts;

(vii) To evaluate the potential hazards of the landfill gas associated with the Project and to propose measures to mitigate the impacts;

(viii) To identify the negative impacts on any sites of cultural heritage and to propose measures to mitigation these impacts;

(ix) To propose the provision of mitigation measures so as to minimize pollution, environmental disturbance and nuisance during construction and operation of the Project;

(x) To investigate the feasibility, practicability, effectiveness and implications of the proposed mitigation measures;

(xi) To identify, predict and evaluate the residual environmental impacts (i.e. after practicable mitigation) and the cumulative effects expected to arise during the construction and operation phases of the Project in relation to the sensitive receivers and potential affected uses;

(xii) To identify, assess and specify methods, measures and standards, to be included in the detailed design, construction and operation of the Project which are necessary to mitigate these environmental impacts and cumulative effects and reduce them to acceptable levels;

(xiii) To investigate the extent of the secondary environmental impacts that may arise from the proposed mitigation measures and to identify constraints associated with the mitigation measures recommended in the EIA study, as well as the provision of any necessary modification; and

(xiv) To design and specify environmental monitoring and audit requirements to ensure the effective implementation of the recommended environmental protection and pollution control measures.

As specified by the EIA Study Brief, the EIA has addressed the following key environmental issues associated with the construction and operation of the Project.

* The potential for water quality impacts during construction activities;

* Potential impacts to marine ecological sensitive receivers;

* Potential impacts to fish culture zones and proposed Fisheries Protection Areas within Tolo Channel and Long Harbour;

* Potential hazards associated with the operation of the project;

* Potential hazards during construction within the proximity of Potentially Hazardous Installations (PHI), including the existing gas production plant within the Tai Po Industrial Estate and the Shuen Wan Landfill;

* The potential noise impacts to sensitive receivers along the coastal areas of Tolo Harbour during construction of the Project; and,

* Cumulative environmental impacts of the Project with other existing, committed and planned developments in the vicinity of the Project, including the LNG Terminal and the proposed pipeline to be installed by the Hongkong Electric Company Limited.

1.4 STRUCTURE OF THIS REPORT

The remainder of this EIA Report comprises the following sections.

Section 2: Provides information on the consideration of alternatives for the siting, design and operation of the Project.

Section 3: Provides a description of the Project highlighting the key infrastructure for the Project and the operation activities.

Section 4: Presents the findings of the water quality impact assessment.

Section 5: Presents the findings of the waste management assessment.

Section 6: Presents the findings of the marine ecology impact assessment

Section 7: Presents the findings of the fisheries impact assessment.

Section 8: Presents the findings of the assessment on potential hazards associated with the construction and operation of the Project.

Section 9: Presents the findings of the assessment of landfill gas hazards.

Section 10: Presents the findings of the air quality impact assessment.

Section 11: Presents the findings of the cultural heritage assessment

Section 12: Presents the environmental monitoring and audit (EM&A) requirements for the construction and operation of the Project.

Section 13: Provides a summary of the conclusions and environmental outcomes drawn from the detailed assessment of the Project.

Annex A:  Route Option Assessment Report

Annex B:  Water Quality Modelling and Assessment Information

Annex C:  Marine Ecology Assessment Information

Annex D:  Fisheries Impact Assessment Information

Annex E:  Landfill Gas Monitoring Data

Annex F:  Marine Archaeological Assessment Information

Annex G:  Implementation Schedule

Annex H:  Waste Management Plan