Power on: Chief Executive Donald Tsang signs a memorandum of understanding with Zhang Guobao confirming the continuous supply of nuclear power and natural gas to Hong Kong for the next two decades.

Chief Executive Donald Tsang today signed a memorandum of understanding with National Development & Reform Commission vice chairman and Administrator of the National Energy Administration Zhang Guobao, to confirm the continuous supply of nuclear power and natural gas to Hong Kong over the next two decades.

The agreement will relieve pressure for electricity tariff increases, the Chief Executive said.

It was also agreed the feasibility of supplying natural gas to Hong Kong via the second west-east natural gas pipeline will be studied, and the Mainland government will build with Hong Kong a liquefied natural gas terminal on the Mainland to supply natural gas to the city.

Speaking at the signing ceremony, Mr Tsang said electricity generation is a major source of pollution in Hong Kong and the Government has been seeking the replacement of coal with cleaner fuels.

He said the sustained supply of clean energy from the Mainland will reduce the need for Hong Kong to build a liquefied natural gas terminal. The resulting reduction in capital investment by the power company concerned will relieve the pressure for electricity tariff increases.

According to the memorandum, the quantity of electricity to be supplied by China Guangdong Nuclear Power Holding Company to Hong Kong in the next 20 years will be no less than the current level.

The China National Offshore Oil Corporation will supply natural gas to Hong Kong for another 20 years.