Acting Permanent Secretary for the Environment Roy Tang says the recent energy pact signed with the Mainland will relieve pressure for electricity tariff increases, adding there is no pressing need to build a liquefied natural gas terminal in Hong Kong.

Speaking on a radio talk show this morning Mr Tang said the agreement confirms the continuous supply of nuclear power and natural gas to Hong Kong over the next two decades.

The pact will also allows local power companies to co-operate with Mainland fuel companies to increase their natural gas sources, he said. With a stable and increasing supply of natural gas the urgency to construct a liquefied natural gas terminal in the city will decrease.

On the progress of China Light & Power's proposal to build a liquefied natural gas terminal, Mr Tang said the Government will consider public interest when it scrutinises the application.