1                                            Introduction

1.1                                      Background

Castle Peak Power Company Limited (CAPCO), a joint venture between CLP Power Hong Kong Limited (CLP) and ExxonMobil Energy Limited (EMEL), is proposing the development of a Liquefied Natural Gas (LNG) Receiving Terminal in the Hong Kong SAR.  CLP is the operator of CAPCO's power generating facilities.  The facility will provide the infrastructure for a sustainable supply of natural gas (NG) for Hong Kong, primarily to fuel CAPCO’s power plant at Black Point but other energy users in Hong Kong, could be considered for terminal access.

The Government’s environmental policy includes the control of emissions from the existing power stations in Hong Kong.  Central to this effort is the use of natural gas.  As a consequence, natural gas is positioned to play an increasingly important role in the generation of electricity.  Development of a LNG terminal in Hong Kong will play a key role in the continued use of gas at Black Point Power Station facilitating CAPCO’s ability to meet the Government’s emission reduction objectives.

1.2                                      Purpose and Nature of the Project

The Project will provide a replacement for the gas currently supplied to CAPCO from the Yacheng gas field, which is expected to be depleted by early in the next decade.  The project involves the construction and operation of a LNG receiving terminal and associated facilities at either South Soko Island or Black Point.  The receiving terminal will provide a facility for receiving and unloading of LNG carriers, onshore LNG storage, LNG regasification, and a pipeline for transporting natural gas (regasified LNG) to the existing Black Point Power Station (BPPS).  For the South Soko option, the natural gas will be sent via a submarine gas pipeline to a Gas Receiving Station (GRS) at BPPS.  For the Black Point option the connection to BPPS will be via a short onshore pipeline within the boundaries of the proposed terminal and the power station.  For both site locations, the principal natural gas user will be CAPCO.

The following elements of the Project addressed in this EIA Report are classified as Designated Projects under the Environmental Impact Assessment Ordinance (Cap. 499) (EIAO).

For both the South Soko Island and Black Point options:

·      Construction of a storage facility for LNG with a storage capacity of more than 200 tonnes (item L.2 of Part I of Schedule 2 of EIAO);

·      Dredging operation for the approach channel and turning circle that exceeds 500,000 m3 (item C.12 of Part I of Schedule 2 of EIAO).

For the South Soko Island option only ([1]) :

·      Installation of a submarine gas pipeline connecting the proposed LNG terminal at the South Soko Island and the Black Point Power Station (item H.2 of Part I of Schedule 2 of EIAO);

·      Dredging operation for the installation of a submarine power cable connecting Shek Pik with the proposed LNG terminal at South Soko which is less than 500m from the nearest boundary of an existing Site of Cultural Heritage (item C.12(a) of Part I of Schedule 2 of EIAO); and,

·      Potential dredging operation for the installation of a submarine water main connecting Shek Pik Reservoir with the proposed LNG terminal at South Soko which is less than 500m from the nearest boundary of an existing Site of Cultural Heritage (item C.12(a) of Part I of Schedule 2 of EIAO). 

For the Black Point option only:

·      Reclamation works (including associated dredging works) of more than 5 ha in size (item C.1 of Part I of Schedule 2 of EIAO).

This report is prepared by ERM-Hong Kong, Ltd (ERM) in accordance with the EIA Study Brief (No. ESB-126/2005) and the Technical Memorandum of the Environmental Impact Assessment Process (EIAO-TM). 

1.3                                      Project History

CAPCO conducted a study as early as in 1992 ([2]) to examine the optimum approach to provide a long term secure and reliable supply of natural gas to Hong Kong and in 2003 initiated site search studies ([3]) to examine the most suitable locations for the LNG terminal. 

CAPCO commenced discussions with the members of the Environmental Study Management Group (ESMG) ([4]) in September 2004 to explain the site selection process and outline a way forward.  The ESMG was represented by a range of Government departments on an administrative, advisory basis, to help CAPCO understand the requirements under the EIA Ordinance on environmental, conservation, gas and fire safety, planning, marine and land aspects.

Over a two year period, a number of assessments were undertaken in consultation with the ESMG members to further determine the feasibility of constructing and operating a LNG terminal at either of the two selected sites (South Soko or Black Point) and identifying any significant environmental or risk issues.  These assessments were based on a set of conservative design assumptions and concluded that both South Soko Island and Black Point were considered feasible for locating a LNG terminal, subject to further analysis under the Environmental Impact Assessment Ordinance (EIAO) process.

At the same time, CAPCO commenced a dialogue with other key stakeholders including Non-governmental Organisations (NGOs) and community groups to seek feedback on their proposals and factor some of the issues raised into the design plans prior to commencing the formal EIAO process.  More than 350 seminars, meetings, workshops and exhibitions were held in the past 18 months ([5]).

The outcome ([6]) of the discussions with Government and other stakeholders was that the two sites would be taken forward into the formal EIAO process and an EIA Study conducted on each.

1.4                                      Community Consultation and Engagement 

Over the course of the project, CAPCO has engaged a wide range of stakeholders, to obtain their input to the assessment and selection of a preferred site for the LNG terminal.

Stakeholders representing government departments, advisory and statutory bodies, local community groups, NGO’s, District Councils, Rural Committees, political parties and professional organisations have participated in briefings, workshops and site visits.  These interactions have facilitated CAPCO’s understanding of the concerns of the project stakeholders and contributed to the project’s design evolution which has enhanced its overall environmental performance.  Site specific feedback is discussed in Section 2 of Part 2 and Part 3 of this EIA Report.

Stakeholders expressed their input on a wide range of issues; security of supply, the environmental benefits of natural gas as a fuel for power generation, the site selection process, safety of LNG transport and storage, effects on tariff, and environmental impacts such as marine and terrestrial ecology, fisheries, and landscape and visual aspects.  Their input assisted in guiding the progress of the EIA, and its presentation in this report ([7]) . 

Since the consultation activities for the LNG terminal project began in September 2004, CAPCO’s engagement activities have included:

·      Ten familiarisation visits to the sites at Black Point and South Soko attended by ACE members, LegCo members, political party representatives, NGO’s, and the media.

·      Four Engagement Workshops attended by 10 different NGO groups attending one or more workshops.

·      Individual meetings with NGO / Green Group representatives.

·      Briefings for local political bodies, politicians, LegCo members and the Advisory Council on the Environment.

·      Briefings to professional bodies such as the committee members of the Environmental Division and Electrical Division of the Hong Kong Institution of Engineers.

·      A series of discussion sessions with representatives of the South Soko Fishermen’s Groups and the Tung Chung residents representatives.

·      Briefings have been provided to the Island District and Tuen Mun District councils, the Heung Yee Kuk, the Tuen Mun and the Tai O Rural Committee.

·      Briefings have been provided to Britcham, AMCHAM, HK General Chamber of commerce.

·      Individual responses to written submissions.

·      A telephone enquiry hotline (tel. 2678 8189) and an electronic feedback area on a designated LNG project website (www.clpgroup.com/environment/lng).

·      A roving exhibition have been organised at Tuen Mun, Mongkok and Tung Chung.

To encourage wider understanding of the project, brochures in English and Chinese were prepared and distributed, and a short video “Cleaner Fuel for Cleaner Air” was uploaded onto the CLP corporate website and shown in CLP customer Service Centres.  Information fliers were also distributed to all CLP customers through electricity bill inserts.

1.5                                      Purpose of this EIA Report

The purpose of this EIA Study 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.  This information will contribute to decisions by the Director of the Environmental Protection Department on:

·      The overall acceptability of any adverse environmental consequences that are to arise as a result of the Project and the associated activities of the Project;

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

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

The detailed requirements of the EIA studies of each site are set out in the EIA Study Brief in Section 2.1. 

As specified in the EIA Study Brief, the respective EIAs have addressed the key environmental issues associated with the construction and operation of the Project.  These key issues are discussed further in Part 2 and 3 of this EIA Report.

 

1.6                                      The Structure of this Report

This EIA Report comprises the following Parts and Sections.

PART 1

MAIN INTRODUCTION

Section 1

Presents the introduction to this EIA Report and the background to this Study.

Section 2

Provides information relating to the need for a LNG terminal in Hong Kong and how other options for provision of LNG were analysed

Section 3

Presents information on what the development of a LNG terminal in Hong Kong would entail.

Section 4

Presents information on the consideration of alternative sites for locating a LNG terminal within Hong Kong.

PART 2

EIA OF SOUTH SOKO (see table of contents therein)

PART 3

EIA OF BLACK POINT (see table of contents therein)

PART 4

SITE PREFERENCE (see table of contents therein)

In addition to the EIA Report there is a separate Executive Summary and Environmental Monitoring and Audit Manuals for South Soko and Black Point. 

 



 

([1])      For the South Soko option will require the installation of a submarine electricity circuit to provide power for the terminal.  The South Soko option may also require the installation of a submarine water main connection to the Shek Pik Reservoir on Lantau Island.  The need for this water main connection will not be determined until later in the design process; however, it has been included in this Environmental Impact Assessment (EIA) in case it is required.

([2])      LNG Feasibility Study, Joint Study by CLP, Shell, Total with Guidance from EPD, September 1992

([3])      a) EIA Project Profile, Liquefied Natural Gas (LNG) Receiving Terminal and Associated Facilities, 13 May 2005,  b) EIA Report: Part 1 - Introduction Section 4 – Identification of Alternative Site Locations

([4])      Five ESMG meetings were held on 6 September 2004, 19 October 2004, 23 November 2004, 3 February 2005, and 26 April 2005, with representatives from Environmental Protection Department, Electrical & Mechanical Services Department, Marine Department, Lands Department, Home Affairs Department, Civil Engineering and Development Department, Antiquities & Monuments Office, Agriculture, Fisheries and Conservation Department, Planning Department, Fire Services Department

([5])      “Interesting Facts on LNG Receiving Terminal Project in Hong Kong”, CLP, 2006

([6])      a) EIA Project Profile, Liquefied Natural Gas (LNG) Receiving Terminal and Associated Facillities,13 May 2005,  b) EIA Study Brief ESB-126/2005,  c) this EIA Report

([7])      NGO attendance and view sharing was on a no commitment basis and was for information and opinion sharing purpose.