Towngas and liquefied petroleum gas (LPG) are two main types of fuel gas widely used throughout Hong Kong for domestic, commercial and industrial purposes. In addition, LPG is used as a fuel for LPG taxis and light buses, and natural gas is used for electricity generation.

    Hong Kong has about two million gas customers in the domestic, commercial and industrial sectors. In 2002, Towngas accounted for about 80.4 per cent of the total fuel gas sold in energy terms, and LPG for about 19.6 per cent.

    Towngas is manufactured at plants in Tai Po and Ma Tau Kok, both using naphtha as feedstock. They have output capacities of 8.4 and 2.6 million cubic metres per day, respectively. The gas is supplied through an integrated distribution system to about 1.47 million customers. The mains network extends throughout Hong Kong via a 125-kilometre high-pressure pipeline and some 2 931 kilometres of distribution mains.

    LPG is imported into Hong Kong by sea and stored at five terminals on Tsing Yi Island before being distributed to approximately 770 000 customers and LPG filling stations. In 2002, about 23 per cent of total sales was supplied in cylinders by some 278 appointed gas distributors (operating 605 cylinder wagons), about 15 per cent was distributed to bulk storage installations providing piped LPG supplies to residential and commercial developments, and the remaining 62 per cent to filling stations as fuel for more than 16 000 LPG taxis. Cylinder LPG is now used in less than 25 per cent of domestic dwellings.

    Natural gas is currently used for power generation at the Black Point and Castle Peak power stations. It is imported from the Yacheng 13-1 gas field off Hainan Island in southern China via a 780-kilometre high-pressure submarine pipeline.

    The Gas Safety Ordinance regulates the importation, manufacture, storage, transport, supply and use of fuel gas. All gas supply companies, gas installers and contractors must be registered with the Gas Authority (the Director of Electrical and Mechanical Services) in order to carry out their operations. At year-end, there were seven registered gas supply companies, 2 846 registered gas installers and 413 registered gas contractors.

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