Construction progresses on Hong Kong’s first LNG import terminal

The developers behind Hong Kong’s first LNG import project, which includes the world’s largest FSRU, are moving forward with the construction works as they look to launch the facility later this year.

Hong Kong LNG Terminal, a joint venture consisting of HK Electric and Castle Peak Power (Capco), is developing the project.

Besides the 263,000-cbm MOL FSRU Challenger, to be renamed Bauhinia Spirit, the project features a double berth jetty.

The project forms part of Hong Kong’s initiative to reduce emissions. The city and special administrative region of China aims to replace about half of its power generation fuel with natural gas.

Regasified LNG coming from the FSRU will supply two power plants via subsea pipelines.

These include the Black Point power station located in the New Territories and Lamma power station located at Lamma Island.

Also, Shell will supply LNG as part of a long-term deal signed with the two utilities in 2019.

Commissioning scheduled in 2022

HK Electric said in its 2021 report on Tuesday that the FSRU-based project has passed “key
stages” of its development process.

These include vessel design upgrade, jetty construction, pipelaying, topside structure fabrication, and hydrostatic testing, according to the power utility.

“The terminal is scheduled for commissioning in 2022,” HK Electric said.

In November last year, the utility said the terminal could start operations in the middle of 2022.

One month later, Japan’s MOL and Dutch Vopak signed a deal to jointly own the giant FSRU which will serve the new LNG terminal in Hong Kong.

Under the deal, Vopak will buy 49.99 percent of the shares from MOL in the vessel owning company of the 2017-built, 345 meters long FSRU with a regasification capacity of 800 mmscfd.

MOL and Vopak will provide the FSRU as well as jetty operations and maintenance and port services to the project.

Prior to this deal, MOL and Vopak joined forces for the development of the project’s jetty and maintenance services.

The FSRU has still not arrived in Hong Kong. According to its AIS data provided by VesselsValue, the unit was on Tuesday located in the Suez Canal.

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