Mainland China Establishes Framework Agreement with Macau on LNG Power Station

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Researched by Industrial Info Resources (Sugar Land, Texas)--China Power Investment Corporation and Macau Natural Gas Company Limited (MNG) entered into a framework agreement in September to establish a joint venture to generate electricity from liquefied natural gas (LNG) on Huangmao Island, Zhuhai City, Guangdong Province. China Power will own 70% of the total equity, and MNG will own 30%. The project will install power generators with a capacity of 800,000 kilowatts, producing clean electricity of 4.8 billion kilowatts annually.

The project is designed to address the increasing electrical demand of Macau. Because of the fast-developing economy, Macau’s electricity consumption exceeded the local energy supply remarkably, prompting the city to request power from the mainland. The electricity transmitted from the mainland to Macau in 2007 is expected to reach 1.5 billion kilowatt-hours, covering 45% of Macau’s electricity supply. In 2005, that number was 350 million kilowatt-hours. Currently, three cables have been installed from the mainland to the city to transmit electricity, and two other cables will be placed before 2010 when the energy from the mainland will cover 60% of the local electricity supply.

The planned power station will consume the LNG transmitted through Huangmao Island, which is 12 kilometers away from Macau with an area of 1.1 square kilometers. In July 2007, the joint venture initiated by China Petroleum & Chemical Corporation (Sinopec) and MNG announced an investment plan worth $1 billion to construct LNG-receiving terminals and accessory facilities on the island. The project will be completed in 2010 when natural gas can be transmitted to Macau through a submarine pipeline.

In addition to Macau, mainland China also exports electricity to Hong Kong and neighboring countries. In 2004, China started the operation to transmit 200 million kilowatt-hours of electricity to Vietnam annually, marking the very first time China has conducted large-scale export of electricity to another country.

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