CONFIDENTIAL

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10

E.

23.

DOMESTIC KEROSENE

Kerosene is no longer a critical fuel in Hong Kong. It is normally sold to the general public through a network of retail shops supplied by a complex organisation of oil company agents and distributors.

In general, agents and distributors draw their supplies in bulk in their own lorries from oil company terminals and depots and fill this bulk kerosene into standard 18 litre drums at a number of filling points scattered around Hong Kong. The drums are then delivered to retail shops in the agents and distributors' lorries.

24.

In

the

event of an emergency, normal distribution will be maintained as long as possible. Thereafter a scheme of control will be implemented in order to try to ensure an equitable supply to the general public using the normal commercial network as far as possible.

25.

China Resources Company is the predominant supplier of the domestic kerosene normally used by the public. If problems arise with supplies from this source, consideration will be given to substituting downgraded Jet A fuel from the Oil Companies Tank Farm.

F.

26.

LPG

LPG is normally sold to the public through agents who collect cylinders from the oil companies' depots, distribute them, and return empty cylinders for refilling. In the event of an emergency normal distribution will be maintained for as long as possible, except that companies will restrict offtake to a "one full cylinder for one empty" basis in order to prevent a built-up of stocks at users' premises.

27.

As LPG gas cylinders are particularly heavy and dangerous to transport (and also normally long-lasting), if this normal system breaks down then distribution may have to cease altogether until conditions improve.

CONFIDENTIAL

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