CONFIDENTIAL

機密

2

XCC(80)82

(c) two Long Range Tanker 2's (LR2) moored in

Hong Kong waters.

Workings have been on the basis of providing thirty days' supply of

fuel oil, which is approximately 200,000 tons.

Background

4.

Hong Kong is likely to be most vulnerable in respect of...

fuel oil from now until the end of 1981 when increased storage

facilities at Lamma and Tap Shek Kok will be completed providing about

100,000 tons of storage space at each. During the interim period, Shell

will have about 45 days of HEC's requirements stored on land. Esso ill

have from 23 to 35 days supply in respect of CLP. The situation will

further ease in 1982 with the opening of the new power stations with

their coal-burning capability and by about 1985 both power companies could be generating 50% of their power by use of coal. There scems

to be little prospect of the reliability of supplies, particularly from the Middle East, improving in the foreseeable future. So, as the

economics of storage in tankers are much more attractive than they were

last year, it is proposed to add roughly a further 30 days supply to

the strategic reserves by this means. The situation will be reviewed

after one year, with the object of dispensing with the reserves in

tankers at the date most appropriate in the context of the overall supply

capability.

5.

If providing strategic reserves of fuel oil by this means

proves attractive, then the possibility of using it for holding strategic reserves of other products can be considered.

Costings

6.

The Shell Company have very kindly cooperated with the

/Government

CONFIDENTIAL

機密

Share This Page