1 Introduction
1.1 Background
CLP Power Hong Kong Limited (CLP) and The Hongkong Electric Company, Limited (HK Electric) are both responsible for providing a safe, highly reliable and clean supply of electricity to Hong Kong’s population at reasonable cost.
CLP operates three power stations that supply electricity to the population in Kowloon, the New Territories and most of the outlying islands, namely the Castle Peak Power Station (CPPS), the Black Point Power Station (BPPS) and the Penny’s Bay Power Station (PBPS) which are owned by the Castle Peak Power Company Limited (CAPCO), a joint venture between CLP and China Southern Power Grid International (HK) Co., Limited, of which CLP holds a 70% interest.
HK Electric operates the Lamma Power Station (LPS) that supplies electricity to the population on Hong Kong and Lamma Island.
Hong Kong has no indigenous energy resources and all energy for Hong Kong needs to be imported. Dependable fuel sources are critical to maintaining reliable power supply for the Hong Kong population, while providing environmental benefits.
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In the early 2000’s, CAPCO began planning for future pipeline gas supplies in light of the depleting gas reserves in CAPCO’s sole supply source at that time, the Yacheng 13-1 gas field in the South China Sea that delivers natural gas to the BPPS via the subsea Yacheng Pipeline.
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After considering various options, CAPCO proposed the development of a land-based Liquefied Natural Gas (LNG) Receiving Terminal and its Associated Facilities (HKLNG Terminal), and meetings and discussions with the Hong Kong Special Administrative Region (HKSAR) Government and other stakeholders commenced in 2004.
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The Environmental Impact Assessment (EIA) Report (Register No.: AEIAR-106/2007) for the HKLNG Terminal project proposed to be located on the South Soko Island was approved with conditions by the Environmental Protection Department (EPD), and an Environmental Permit (EP) (No. EP-257/2007) was granted on 3 April 2007. |
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This project was then put on hold after the HKSAR Government signed a Memorandum of Understanding on Energy Co-operation with the Mainland Government, facilitating the supply of natural gas from Turkmenistan transported through the Mainland by the Second West-to-East Pipeline, and delivered to the BPPS by the subsea Hong Kong Branch Line; which commenced operations in early 2013. |
Therefore, the BPPS is currently supplied with pipeline gas from two sources, namely the Yacheng Pipeline and the Second West-to-East Pipeline / Hong Kong Branch Line, both from the Mainland.
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In 2006, HK Electric began importing pipeline gas from the Guangdong Dapeng LNG receiving terminal in Shenzhen, Mainland via the subsea Dapeng Pipeline to supply the gas-fired power generation units at the LPS. |
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In 2014, the Environment Bureau (ENB) of the HKSAR Government completed its consultations and discussions on the Future Fuel Mix for Electricity Generation for Hong Kong. According to the consultation document issued by EnB, two fuel mix options were proposed ([1]): · Option 1: Importing more electricity through purchase from the Mainland power grid; and · Option 2: Using more natural gas for local power generation. |
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On 31 March 2015, the HKSAR Government launched the three-month Public Consultation on the Future Development of the Electricity Market in Hong Kong. With regard to the above two fuel mix options, the HKSAR Government plans to increase the percentage of natural gas used for power generation to around 50 per cent by 2020 to meet its pledged environmental targets ([2]). |
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Subsequently, in January 2017, the HKSAR Government published Hong Kong’s Climate Action Plan 2030+ Report, which set the following targets ([3]): · To reduce absolute carbon emissions by 20% by 2020, and by 26% - 36% by 2030, using 2005 as the base; and · To reduce carbon intensity by 50% - 60% by 2020, and by 65% - 70% by 2030, using 2005 as the base. |
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The Climate Action Plan 2030+ Report includes phasing down Hong Kong’s remaining coal plants as they reach their retirement and replacing them with natural gas or non-fossil fuel sources, which will enable Hong Kong to further reduce carbon emissions significantly in the medium term. The report also states that the HKSAR Government will work closely with CLP and HK Electric; to ensure they can secure adequate supplies of natural gas and put the required infrastructure in place in the coming decade to handle the larger quantities of natural gas that will be required to be imported into Hong Kong in order to meet these HKSAR Government emissions targets.
1.1.1 Proposed Development of the Hong Kong Offshore LNG Terminal Project
To support the HKSAR Government in the increased use of natural gas in Hong Kong to reduce carbon intensity from 2020 onwards, CLP and HK Electric have identified that the development of an offshore LNG receiving terminal (LNG Terminal) in Hong Kong based on Floating Storage and Regasification Unit (FSRU) technology presents an additional gas supply option that will provide long-term energy security for Hong Kong, as well as access to competitive gas supplies from world markets.
Further, the offshore LNG Terminal will have a reduced environmental footprint compared with the originally proposed onshore, land-based HKLNG Terminal, and its construction period will be much shorter.
Having an LNG Terminal in Hong Kong will increase CLP and HK Electric’s optionality regarding the sourcing of future gas supplies for Hong Kong, and provide the flexibility to directly access competitively priced gas from the global LNG market, including its associated spot market, therefore improving the Hong Kong LNG buyers’ future negotiating position, and diversity of gas supply sources. The additional gas supply sources will augment the current pipeline gas supplies via the Yacheng Pipeline and the Second West-to-East Pipeline / Hong Kong Branch Line to the BPPS, and the Dapeng Pipeline that is the sole source of pipeline gas supply to the LPS, and will provide enhanced security and reliability of electricity supply in Hong Kong.
Therefore, CLP and HK Electric have agreed to jointly explore the feasibility of siting an FSRU based LNG Terminal offshore in HKSAR waters to serve as a gas supply source to meet Hong Kong’s future power generation fuel supply needs (hereinafter referred to as the ‘Hong Kong Offshore LNG Terminal’ or the ‘Project’).
The Project is planned to be a ‘shared-use’ import facility that has the capability to receive and store LNG and then deliver regasified LNG (natural gas) by subsea pipeline to the BPPS and the LPS. The LNG Terminal can also supply other potential current or future users with natural gas, or other potential uses of LNG in Hong Kong such as for marine transportation.
The proposed Project is to examine the feasibility and safety requirements of the development, construction and operation of the offshore and onshore infrastructure facilities required for the LNG Terminal and its associated subsea pipelines that will connect the LNG Terminal to the BPPS and the LPS and the gas receiving stations (GRS) at the BPPS and the LPS.
CLP is leading the development of the Project, acting for and on behalf of CAPCO and HK Electric, and hence for the EIA Study purposes, CLP is the Project Proponent. However, the submission of, and content described in this Environmental Impact Assessment (EIA) Report, does not amount to a commitment by or on behalf of CLP/CAPCO or HK Electric to proceed with the Project.
1.2 Purpose & Nature of Project
The scope of the proposed Project involves the construction and operation of the following key infrastructure facilities, as defined in Clause 1.2 of the EIA Study Brief No. ESB-292/2016 (EIA Study Brief) and is further described in Section 2 and Section 3 of the EIA Report:
· a FSRU vessel equipped with LNG storage tanks and regasification equipment;
· a double berth jetty with mooring facilities for the FSRU vessel and LNG carriers;
· two subsea gas pipelines connecting the FSRU vessel with the BPPS and the LPS respectively; and
· GRSs located entirely within the BPPS and LPS respectively.
Collectively, when completed and operational, the above-mentioned major infrastructure facilities will provide long-term energy security for Hong Kong. The implementation of these new infrastructure facilities is required to deliver the HKSAR Government’s strategy to increase the use of natural gas for power generation in Hong Kong from 2020 onwards.
The LNG Terminal is to be located offshore, at a selected site in the southern HKSAR waters to the east of the Soko Islands, and will comprise of an FSRU vessel (FSRU Vessel) which will be moored at a double berth jetty (Jetty). The Jetty will have facilities to enable LNG carrier (LNGC) to berth alongside and transfer its LNG cargo across the Jetty into the storage tanks of the FSRU Vessel. The stored LNG on the FSRU Vessel will then be regasified as needed, such that the natural gas can be supplied to the GRSs at the BPPS and the LPS via the BPPS Pipeline and the LPS Pipeline, respectively.
The indicative location of the key Project components is shown in Figure 1.1, below.
The following elements of the Project are classified as Designated Projects under the Environmental Impact Assessment Ordinance (EIAO) (Cap. 499):
· Construction of a storage, transfer and trans-shipment facility of liquefied natural gas with a storage capacity of not less than 200 tonnes (Item L.2 of Part I of Schedule 2 of EIAO);
· Dredging operations for the construction and maintenance of the LNG Terminal Jetty, the construction of the BPPS Pipeline and the LPS Pipeline that exceeds 500,000m3 or are less than 500m from the nearest boundary of an existing or planned marine park (Item C.12 of Part I of Schedule 2 of EIAO); and
· Construction of the submarine gas BPPS Pipeline and LPS Pipeline connecting the LNG Terminal with the GRS at the BPPS and the GRS at the LPS (Item H.2 of Part I of Schedule 2 of EIAO).
1.3 Purpose and Objectives of the EIA Study
The purpose and objectives of the EIA Study are to provide information on the nature and extent of the environmental impacts arising from the construction and operation of the Project and associated works that will take place concurrently in accordance with meeting the requirements described in the EIA Study Brief. This information will contribute to decisions by the Director of Environmental Protection on:
· The overall acceptability of any adverse environmental consequences that are likely to arise as a result of the Project and associated works;
· The conditions and requirements for the detailed design, construction and operation of the Project and associated works to mitigate against adverse environmental consequences wherever practicable; and
· The acceptability of residual impacts after the proposed mitigation measures are implemented.
The detailed requirements of the EIA Study are set out in Clause 3 of the EIA Study Brief, and the specific scope of work for the EIA Study is presented in Clause 3.2 of the EIA Study Brief.
In more detail, the objectives of the EIA Study as defined in the EIA Study Brief are as follow:
(i) to describe the Project and associated works together with the requirements and environmental benefits for carrying out the Project;
(ii) to identify and describe elements of community and environment likely to be affected by the Project and associated works and/or likely to cause adverse impacts to the Project, including both the natural and man-made environment and the associated environmental constraints;
(iii) to identify and quantify the potential hazard to life due to the Project and associated works and activities;
(iv) to identify and quantify emission sources and determine the significance of impacts on sensitive receivers and potential affected uses;
(v) to identify and quantify any potential losses or damage to flora, fauna and natural habitats;
(vi) to identify any potential visual and glare impacts and to propose measures to mitigate these impacts;
(vii) to identify any negative impacts on archaeological resources, and to propose measures to mitigate these impacts;
(viii) to propose the provision of infrastructure or mitigation measures so as to prevent or minimise hazard to life, pollution, environmental disturbance and nuisance during construction and operation of the Project;
(ix) to investigate the feasibility, effectiveness and implications of the proposed mitigation measures;
(x) to identify, predict and evaluate the residual (i.e. after practicable mitigation) environmental impacts and the cumulative effects expected to arise during the construction and operation phases of the Project in relation to the sensitive receivers and potential affected uses;
(xi) to identify, assess and specify methods, measures and standards, to be included in the detailed design, construction and operation of the Project which are necessary to mitigate these residual environmental impacts and cumulative effects and reduce them to acceptable levels;
(xii) to design and specify environmental monitoring and audit requirements; and
(xiii) to identify any additional studies necessary to implement the mitigation measures or monitoring and proposals recommended in the EIA report.
The EIA Report has been produced in accordance with the requirements in the EIA Study Brief and the Technical Memorandum on Environmental Impact Assessment Process issued under the EIAO (EIAO-TM) for the Project, the aim being to obtain an EP under the EIAO. The description of the Project presented in the EIA Report has been based on the best available information compiled by CLP and HK Electric that describes the relevant construction activities, operational details and baseline information describing the conditions relating to the Project and its surrounding environment. This EIA Report for the Project prepared by CLP and HK Electric is hereby submitted to EPD for approval under the EIAO.
1.4 Public Engagement
During the performance of the EIA Study for the Project, CLP and HK Electric have been reaching out to potential stakeholders to explain the Project, and seek their views and opinions. Stakeholder engagement activities, which commenced in May 2016, included briefings and meetings with special interest groups including members of District Councils, advisory committees, academics, fishermen groups, environmental bodies etc. Details of the stakeholder engagement activities undertaken and the feedback received are presented in Annex 1A. The feedback and opinions obtained from the stakeholders has been fully considered and incorporated, where applicable, as part of the technical assessments undertaken in the EIA Study.
1.5 Organisation of the EIA Report
Following this Introduction, the remainder of the EIA Report is organised as follows:
Section 2 Presents the background and history of the Project and provides information on the purpose, objectives and benefits of the Project, consideration of alternatives, and scenarios with and without the Project.
Section 3 Presents a description of the Project highlighting the key design, engineering, construction, commissioning and operational activities, and the timeline for implementing the Project. This section forms the basis of the technical assessments for the EIA Study presented in Sections 4 – 12 below.
Section 4 Presents the Air Quality Impact Assessment.
Section 5 Presents the Hazard to Life Study.
Section 6 Presents the Noise Impact Assessment.
Section 7 Presents the Water Quality Impact Assessment.
Section 8 Presents the Waste Management Implications.
Section 9 Presents the Ecological Impact Assessment.
Section 10 Presents the Fisheries Impact Assessment.
Section 11Presents the Visual Impact Assessment.
Section 12 Presents the Cultural Heritage & Archaeology Impact Assessment.
Section 13Presents the Environmental Monitoring and Audit Requirements.
Section 14Presents the Conclusions, and summarises the Environmental Outcomes of the EIA Study.