1 INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The Hong Kong and China Gas Company Limited (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. Collectively, these facilities are hereafter referred to as the "Project".

Towngas operates the Towngas Network, which supplies gas to domestic, commercial and industrial consumers. The gas (of which the major components include hydrogen, methane and carbon dioxide) is produced currently 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 to produce gas at the existing production plant.

1.2 PURPOSE AND SCOPE OF THE EIA

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).

The main objective of the Environmental Impact Assessment (EIA) study is to provide information on the nature and extent of potential environmental impacts arising from the construction and operation of the proposed Project and related activities taking place concurrently. The study will also contribute to decisions on the overall environmental acceptability of the Project, after the implementation of environmental mitigation measures.

The EIA provides a detailed assessment of the potential environmental impacts associated with the Project, in relation to the issues specified in the EIA Study Brief (No. ESB-087/2001), including water quality, waste management, marine ecology, fisheries, hazard to life, landfill gas, air quality, noise and cultural heritage.