CLP Drops Plan for HK$10 Billion LNG Plant, Morning Post Says

By Kyunghee Park

Sept. 12 (Bloomberg) -- CLP Holdings Ltd. abandoned a HK$10 billion ($1.3 billion) plan to build a liquefied natural gas plant in Hong Kong, the South China Morning Post said, citing CLP Commercial Director Richard Lancaster.

CLP may instead invest in an LNG processing plant in China, either a regasification facility planned by PetroChina Co. in Dachen Bay, or one proposed by China National Office Oil Corp. in Zhuhai, the newspaper said.

CLP will also negotiate to source gas from a China National Offshore field in the South China Sea and from PetroChina's planned 4,800-kilometer (2,983 mile) pipeline from Turkmenistan, the newspaper said.

The power producer scrapped the LNG project after China agreed last month to extend supplies of natural gas and electricity to Hong Kong for an additional 20 years, according to the report.

To contact the reporter on this story: Kyunghee Park in Hong Kong at kpark3@bloomberg.net