Gas

Gas is widely used throughout Hong Kong for domestic, commercial and
industrial purposes. Two main types of fuel gas are available for general
use: Towngas and liquefied petroleum gas (LPG).

Hong Kong has about 1.96 million gas customers. In 1997, Towngas
accounted for 74 per cent of the total fuel gas sold in energy terms, and
LPG for 26 per cent.

Towngas is manufactured in plants at Tai Po and Ma Tau Kok, both using
naphtha as a feedstock. They have output capacities of 8.4 and 2.2 million
cubic metres per day respectively. The gas is supplied through an
integrated distribution system to about 1.17 million customers.

The mains network extends throughout Hong Kong via an 111.7-kilometre
high-pressure pipeline and some 2 095 kilometres of distribution mains. A
further 27 kilometres of high-pressure pipeline was completed in mid-1997
for supplying Towngas to Chek Lap Kok and Tung Chung on Lantau
Island.

LPG is imported into Hong Kong by sea and stored at five terminals on
Tsing Yi before being distributed to approximately 790 000 customers.
About 59 per cent of total sales is supplied in cylinders by 524 distributors
operating 765 cylinder wagons.

The government aims to provide designated overnight parking sites for
these cylinder wagons. The first two, at Tuen Mun and Kwai Tsing, have
begun operations and a third site at Pok Fu Lam is scheduled to open in
mid-1998. LPG is also supplied by road tanker to 170 bulk storage
installations providing centralised piped gas supplies.

Since 1982, the government has encouraged the installation of a piped gas
supply in new buildings to discourage further growth in the use of LPG
cylinders in domestic dwellings. It also began a programme of
encouraging the upgrading of sub-standard gas water heaters. The
percentage of domestic dwellings now using cylinders fell to less than
29 per cent in 1997; and some 89 529 gas water heaters have been
upgraded.

As a further means of safeguarding the general public and gas consumers,
the Gas Safety Ordinance was introduced on April 1, 1991. This
ordinance and its subsidiary regulations cover all aspects of fuel gas
importation, manufacture, storage, transport, supply and use of gas. The
legislation was amended in 1996 to encompass periodic examination of
gasholders, deter damaging of underground gas pipes, improve safety
requirements for the maintenance of gas installations and prohibit the
importation and sale of certain types of disposable LPG containers.

Since April 1, 1992, all gas supply companies, gas installers and
contractors must be registered with the Gas Authority (the Director of
Electrical and Mechanical Services) in order to carry out their operations.
In 1997, eight gas supply companies, 3 434 gas installers and 454 gas
contractors were registered under the scheme.

Natural gas became available in Hong Kong at the end of 1995 exclusively
for power generation at the Black Point and Castle Peak power stations. It
is imported from the Yacheng 13-1 gas field off Hainan Island in southern
China via a 780-kilometre, high-pressure submarine pipeline.

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