“We are running out of gas - the South China Sea has less reserves than we expected,” CLP MD Andrew Brandler told a conference of corporate CEOs in Guangzhou.
Brandler said the proposed terminal would not only give Hong Kong more fuel independence, but would also help reduce the city's air pollution.
But he said the terminal would not be ready until 2011.
“In the interim we will have to burn more coal,” Brandler said.
The terminal would be built by the ExxonMobil-CLP JV Kapco, which the energy giant holds a 60% stake.
CLP Holding Ltd, Hong Kong’s biggest power company, currently uses gas from CNOOC Ltd’s Guangdong terminal for its gas-fired plants.