XN000022-1981-01-29 — Page 2

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THURSDAY, JANUARY 29, 1981

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SECOND OIL RESERVE TANKER DUE HERE IN MARCH

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HONG KONG'S FLOATING RESERVES OF FUEL OIL FOR ELECTRICITY GENERATION HAVE BEEN BOOSTED BY A FURTHER CARGO OF OVER 123 000 METRIC TONS OF OIL ON BOARD THE TANKER SEA BREEZE+,

A GOVERNMENT SPOKESMAN SAID THAT THE TANKER LEFT ON TUESDAY FROM ROTTERDAM, WHERE PART OF THE CARGO WAS LOADED, HAVING EARLIER LOADED THE REST OF THE CARGO IN MILFORD HAVEN IN ENGLAND.

THE SHIP IS NOW STEAMING TO HONG KONG AT ITS MOST ECONOMICAL CRUISING SPEED, WHICH WILL BRING IT TO HONG KONG BY MID-MARCH. IT COULD BE SPEEDED UP TO ARRIVE HERE BY THE END OF FEBRUARY IF REQUIRED.

THE TANKER +STRAITS DAHLIA+, WITH OVER 74 000 METRIC TONS OF FUEL OIL ON BOARD, ARRIVED IN HONG KONG ON DECEMBER 31 AND IS NOW MOORED WEST OF THE NINEPIN GROUP OF ISLANDS.

THE SPOKESMAN POINTED OUT THAT THE CARGOES ON BOARD THESE TWO TANKERS, AMOUNTING TO JUST UNDER 200 000 METRIC TONS REPRESENTED ABOUT 30 DAYS CONSUMPTION OF FUEL OIL FOR ELÉCTRICITY GENERATION.

+THE CARGOES THUS ACHIEVE THE TARGET OF THE FLOATING FUEL OIL RESERVE SCHEME, WHICH IS BEING UNDERTAKEN BY OWENSBORD ENTERPRISES LTD., Á COMPANY SET UP BY THE GOVERNMENT LAST YEAR WITH THE CO-OPERATION OF THE TWO POWER COMPANIES, ESSO AND SHELL,* HE SAID.

THE OIL ON BOTH TANKERS IS INTENDED FOR LONG TERM STORAGE, AS A RESERVE AGAINST ANY DISRUPTION OF SUPPLIES OF OIL FROM HONG KONG'S USUAL SOURCES. IT WILL BE DISCHARGED LATER THIS YEAR INTO LAND TANKS WHICH ARE NOW BEING CONSTRUCTED AT THE NEW POWER STATIONS ON LAMMA ISLAND AND AT CASTLE PEAK.

THE SPOKESMAN SAID THE OIL ON BOARD THE SEA BREEZE+ WAS PURCHASED ON DECEMBER 30 AT A PRICE OF US$224.75 PËR TON, WHICH WAS IN LINE WITH MARKET RATES PREVAILING AT THAT TIME FOR OIL TO BE LOADED IN NORTH-WEST EUROPE.

HE SAID THE COSTS OF THE STORAGE SCHEME, INVOLVING THE TWO TANKERS, WOULD BE MET THROUGH THE FUEL VARIATION CLAUSE WITH AN INCREASE OF ABOUT ONE-AND-A-HALF PER CENT ON CONSUMERS' BILLS. THE COST OF THE OIL ITSELF WOULD NOT BE PASSED ON TO CONSUMERS UNTIL IT WAS ACTUALLY BURNT, WHICH MIGHT NOT TAKE PLACE FOR SOME TIME.

+ IN THE WAKE OF SPIRALLING OIL PRICES, THE SPOKESMAN SAID, THE TIMELY PURCHASE OF THIS FUEL OIL RESERVE COULD EVENTUALLY BENEFIT CONSUMERS.+

THE SPOKESMAN SAID THE ADVICE OF THE MARINE DEPARTMENT WAS BEING SOUGHT AS TO A SUITABLE MOORING FOR THE SEA BREEZE+ WHEN IT ARRIVES IN HONG KONG WATERS. BECAUSE OF THE DEPTH OF WATER REQUIRED BY THE SHIP, IT MIGHT NOT BE FEASIBLE TO MOOR IT CLOSE TO THE STRAITS DAHLIA+.

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