CHINA, HONG KONG, CHINA: Memorandum of Understanding between the National Energy Agency and Hong Kong Special Administrative Region on Supply of Natural Gas and Electricity to Hong Kong

Meta Data
Title in national language: 
國家能源局與香港特別行政區政府關於 供氣供電問題的諒解備忘錄
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2008
Effective Start Year: 
2008
Scope: 
Bilateral
Document Type: 
Agreement, Other
Economic Sector: 
Energy, Power
Energy Types: 
Power, Gas, Nuclear
Issued by: 
National Energy Administration, Government of Hong Kong Special Administrative Region
Source: 
Hong Kong and Macao Affairs Office of the State Council (CH)
Environment Bureau (EN)
File: 
MoU between the NEA and Hong Kong SAR on Supply of Natural Gas and Electricity to Hong Kong (CH)
MoU between the NEA and Hong Kong SAR on Supply of Natural Gas and Electricity to Hong Kong (EN)
Overall Summary: 
According to the MoU, the Central People's Government (CPG) supports the China Guangdong Nuclear Power Holding Co Ltd. to renew its supply agreement with Hong Kong for a further term of 20 years. The quantity of electricity supply will be no less than the current level in principle. On the supply of natural gas, the CPG supports China National Offshore Oil Corporation's renewal of its supply agreement with Hong Kong for a further term of 20 years. Furthermore, it was agreed in principle that the feasibility of supplying natural gas to Hong Kong via the Second West-East Natural Gas Pipeline would be studied, and that the CPG would jointly build with Hong Kong an LNG terminal on the Mainland for supplying natural gas to Hong Kong. Detailed arrangements for supplying natural gas and electricity to Hong Kong, such as pricing and supply quantity, will be worked out on commercial principles between the relevant enterprises on both sides.
Pricing
Energy pricing: 
[...] The price of electricity should be negotiated by business principles. ---The central government supports the supply of natural gas to Hong Kong. [...] The price should be determined in accordance with market principles.
Energy Supply and Infrastructure
Energy supply priorities: 
The central government will continue to support the Mainland and Hong Kong SAR (Special Administrative Region) energy cooperation to ensure long-term stable nuclear power and natural gas supply to Hong Kong, to increase the use of clean energy, [...] --- The Central and Hong Kong SAR (Special Administrative Region) Government support China General Nuclear Power Group to renew electricity supply contract for 20 years on the basis of the original agreement. And in principle, the power supply is not less than the existing power supply level [...] --- the NEA（National Energy Administration of the Central People’s Government supports the China National Offshore Oil Corporation’s (CNOOC) renewal of its supply agreement with Hong Kong for a further term of 20 years. [...]
Infrastructure development priorities: 
The feasibility of supplying natural gas to Hong Kong via the Second West-East Natural Gas Pipeline would be studied, and that the Mainland would jointly build with party(ies) in Hong Kong a LNG terminal on the Mainland for supplying natural gas to Hong Kong.
Cooperation in connectivity: 
The feasibility of supplying natural gas to Hong Kong via the Second West-East Natural Gas Pipeline would be studied, and that the Mainland would jointly build with party(ies) in Hong Kong a LNG terminal on the Mainland for supplying natural gas to Hong Kong.
Technology
Clean energy technology deployment: 
the feasibility of supplying natural gas to Hong Kong via the Second West-East Natural Gas Pipeline would be studied, and that the Mainland would jointly build with party(ies) in Hong Kong a LNG terminal on the Mainland for supplying natural gas to Hong Kong.
Natural gas transportation technology: 
The feasibility of supplying natural gas to Hong Kong via the Second West-East Natural Gas Pipeline would be studied, and that the Mainland would jointly build with party(ies) in Hong Kong a LNG terminal on the Mainland for supplying natural gas to Hong Kong.