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Hong Kong and China Gas (Towngas), the city's main piped gas distributor, said the company intends to invest HK$2 billion annually in mainland's projects using new energy sources.
Alfred Chan, managing director of Towngas, said the company is exploring potential investments in provinces or regions like the Inner Mongolia Autonomous region, Shanxi, Guizhou and Anhui provinces.
The Hong Kong and China Gas (Towngas) says the company plans to invest HK$2 billion annually for gas production on the mainland. Bloomberg
Projects include using new energy sources including coal chemicals and coalbed methane, a form of natural gas stored in coal seams.
Chan said as the reserves in petroleum and natural gas are limited, the potential of developing coal-based projects is good.
Towngas has two coal-based projects in Shanxi. One of those with a capacity of 250,000-cubic meter liquefied coalbed methane will be in use in August, the managing director added.
In the coalbed methane project there, the capacity will rise from 250,000 to 900,000 cubic meters, he said.
The firm has set aside HK$3 billion for total capital expenditure in 2008. Two-thirds will be spent in new energy projects, he added.
About the gas supply in Hong Kong, James Kwan, executive director and chief operating officer of Towngas, said the company currently has no plans to raise the tariff even though the high oil price has put pressure on the company.
Kwan said that Towngas introduced liquefied natural gas (LNG) as a source since September 2006, and "it has helped save HK$1.8 billion up to now."
The company can use less oil, Kwan said, adding that Towngas has signed a long-term agreement with suppliers to control the fuel costs.
Towngas holds a controlling stake in Panva Gas (now known as Towngas China) since last year. Chan said the two companies have different focus on the mainland. "Towngas focuses on large-scale projects including gas and water treatment, while Towngas China will focus on small- to medium- scale gas and petroleum gas projects."
Talking about the impact of the Sichuan quake, Chan said Towngas China has been operating projects in 12 cities in the province and has a total of 1,200 employees.
"The gas pipelines have been slightly damaged," he said, "the loss is just minimal and the projects are insured," adding that all the pipelines have been recovered.
The company will move its fleet to those affected areas, in order to deliver food, materials, cylinders gas and stoves to the victims, said Lee Shau Kee, chairman of Towngas.
The company has donated HK$10 million and Lee donated HK$100 million for the quake victims through his Lee Shau Kee Foundation. |
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