CNOOC backs planned trial of LNG vehicles in Hong Kong
Mainland energy giant backs trial of 'cleaner and cheaper' gas for heavy vehicles in Hong Kong
The mainland's biggest LNG supplier is backing a move to introduce the fuel into Hong Kong's transport market as an affordable solution to the city's notorious roadside pollution problems.
China National Offshore Oil Corporation (CNOOC) is working with a local company on plans to introduce liquefied natural gas as vehicle fuel, with a vision of building a network of LNG refuelling stations similar to those found in mainland cities.
The partnership between CNOOC and the Hong Kong LNG Company will see the companies work with a cross-border coach operator to trial an LNG bus. But no refuelling facilities will be built yet because LNG is not covered by local laws. The bus will be refuelled in Shenzhen, which has at least 13 LNG refuelling stations to support hundreds of vehicles.
Zhu Jianwen, president of CNOOC Gas and Power Trading & Marketing, said Hong Kong was surrounded by a massive, robust LNG supply network and could take advantage of this.
The world's third-largest LNG buyer, CNOOC imported almost 22 million tonnes last year. The Dapeng LNG terminal in eastern Shenzhen also supplies Hongkong Electric and Towngas via an underwater pipe.
While LNG fuel is said to be about 20 per cent cheaper than alternative vehicle fuels, Zhu said the gas could also offer a shortcut for the city to meet targets set down in its clean-air plan. Under the plan, published in March, the government wants to meet a yet-to-be-revealed set of air-quality objectives by 2020.