LCQ13: Public housing estates with supply of centralised liquefied petroleum gas
Source: Hong Kong Government special administrative region
LCQ13: Public housing estates with supply of centralised liquefied petroleum gas Question:
It is learnt that there are 15 public housing estates (PHEs) under the Hong Kong Housing Authority (HA) that are installed with centralised liquefied petroleum gas (LPG) supply. The previous arrangements for renewal of LPG suppliers were such that existing suppliers with satisfactory performance would be eligible for renewal. Subsequently, with reference to the experience in private housing developments, and taking into account public views and the Competition Commission’s recommendations, the HA decided in August 2017 that tenders should be invited for awarding new contracts for the supply of centralised LPG to PHEs upon expiry of the existing contracts. In this connection, will the Government inform this Council:
PHE(2) whether it has compiled statistics on the total annual supply of domestic piped LPG to the PHEs and shared HOS estates mentioned in (1) over the past five years, as well as the annual average price of LPG in such PHEs and HOS estates; of the comparison between such average LPG prices and the corresponding town gas prices during the same period; and
(3) whether the owners’ committees or residents of the PHEs mentioned in (1) have requested the HA to replace the gas supply system (e.g. natural gas)? Our reply to the question raised by the Hon Chan Hok-fung is as follows:
(1) At present, 15 public rental housing (PRH) estates under the Hong Kong Housing Authority (HA) are equipped with centralised liquefied petroleum gas (LPG) supply systems. According to the past policy, prior to 2017, on the premise of ensuring that residents of the estates could enjoy safe and stable centralised LPG supply services, the HA would renew the contract with the existing supplier upon expiry of the contract if the supplier’s performance had been satisfactory during the contract period. In the light of public views and the Competition Commission’s advice of 2016, the Commercial Properties Committee of the HA approved in 2017 that new contracts would be awarded by tender instead for centralised LPG supply upon expiry of the existing contracts. Accordingly, the HA arranged bundled tendering for the LPG supply contracts for two PRH estates (i.e. Wah Fu (II) Estate and Nga Ning Court) as a trial in 2018. The new contracts were successfully awarded and the handover work was completed smoothly. Since 2019, the new supplier has commenced the supply of LPG for the two estates for a contract term of 10 years.
PRH estatesHong Kong IslandHong Kong LimitedCheung ChauHong Kong LimitedTai PoTai PoHong Kong LimitedTuen MunHong Kong LimitedTuen MunHong Kong LimitedNorth DistrictHong Kong LimitedTuen MunHong Kong LimitedTuen MunHong Kong LimitedLantau IslandHong Kong LimitedKowloonPeng ChauLantau IslandTuen MunHong Kong LimitedYuen Long(2) and (3) As for the amount of supply of domestic centralised LPG to the PRH estates and HOS estates with shared LPG storage tanks, the concerned LPG suppliers indicated that the relevant information was commercially confidential and therefore could not be disclosed. Moreover, the LPG consumption varies depending on a number of factors such as the number of occupants in the household, seasons, the living style of the residents and the efficiency of the gas appliances. The estimated average LPG consumption for a 3-person household is around seven cubic metre per month.
To protect the interests of the centralised LPG consumers in the PRH estates and HOS estates with shared LPG storage tanks, the HA has stipulated in the centralised LPG supply contracts that the LPG prices charged by the suppliers shall not be higher than the market rate. For the benefit of residents, the HA will also require in the tender documents for LPG supply that LPG suppliers must provide free annual inspection of gas appliances and waive the minimum charge and the monthly fee for the maintenance service plan provided to domestic tenants/occupiers using the LPG supply service. We have meetings with LPG suppliers every six months and will review the relevant LPG prices by making reference to the domestic centralised LPG prices published by local LPG suppliers to ensure compliance with the relevant requirements. In April 2025, the latest average price of domestic centralised LPG published by LPG suppliers in April 2025 was $47.34 per cubic metre.
As for the town gas price for household customers for the same period, with effect from August 1, 2024, the charge ranges from 27.60 cents to 28.55 cents per megajoule, plus a fuel cost adjustment. In addition, the minimum basic charge for each household customer is $20 and the monthly maintenance charge is $10. Town gas is charged based on the energy unit of megajoule, while LPG is generally charged per cubic metre for consumption. As the unit of measurements, basis of calculation and charging scheme of these two gas types are different; the heat efficiency of LPG and town gas appliances are different; and these two gas types vary in aspects such as calorific value, it is not possible to make a direct comparison of their prices.
So far, there is no request for the replacement of LPG supply systems from the tenants of PRH estates or IO’s committees of the HOS estates. Issued at HKT 12:25