The Hong Kong and China Gas Company
| Company type | Public |
|---|---|
| Industry | Energy, Utilities, Real estate |
| Founded | June 3, 1862 in Hong Kong |
| Founder | William Glen |
| Headquarters | Hong Kong , Hong Kong |
Area served | Hong Kong, Mainland China |
Key people | Lee Ka Kit (Chairman), Lee Ka Shing (Chairman) |
| Products | Town gas supply, natural gas, real estate development, clean energy solutions, telecommunications |
| Owner | Henderson Land Development (largest shareholder, 41.53% as of 2021) |
| Website | www |
The Hong Kong and China Gas Company Limited, operating under the brand name Towngas, holds the exclusive right to supply town gas across the entire Hong Kong territory. Established in 1862, it ranks among the region's longest-standing publicly traded enterprises.
History
In February 1862, William Glen obtained the exclusive license from Governor Sir Hercules Robinson to provide gas services to Victoria (currently known as Central). The company was officially formed on 3 June 1862. By December 1864, it had laid down 15 miles of gas pipelines and installed 500 gas lamps along Queen's Road and Upper Valley Road. Residents in Kowloon continued relying on candles and oil lamps until gas infrastructure reached the area nearly three decades later. The initial coal-powered gas plant—the first of its kind in Asia—was situated at West Point near Whitty Street. It supplied gas to government offices, military barracks, Jardine Matheson’s offices, the Hong Kong Dispensary, and the Hong Kong Hotel, producing approximately 120,000 cubic feet of gas daily. The company remained under British control until 1954, when local firm Wheelock and Marden Company Limited acquired majority ownership and shifted the company’s registered headquarters to Hong Kong.
As of 2024, four original gas lamps are preserved on the granite steps connecting Ice House Street with Duddell Street; these are maintained by Towngas as part of a heritage monument.
Gas production and network
Towngas imports natural gas from Australia, which is stored at the Dapeng liquefied natural gas (LNG) terminal in Shenzhen under a contractual agreement spanning 25 years. A 34-kilometer underwater pipeline links this terminal to Towngas’ Tai Po production facility. The Tai Po plant accounts for 97% of town gas output, while the Ma Tau Kok plant contributes the remaining 3%. These facilities collectively supply approximately 1.8 million households through an extensive network exceeding 3,500 kilometers of pipelines throughout Hong Kong.
Additionally, Towngas incorporates treated landfill gas into its supply to mitigate greenhouse gas emissions. In Hong Kong, town gas is primarily generated from naphtha and natural gas, consisting mainly of hydrogen (49%), methane (28.5%), carbon dioxide (19.5%), and a minor proportion of carbon monoxide (3%).
Towngas serves about 85% of residential customers in Hong Kong alongside commercial and industrial clients. The group also manages over 500 projects across mainland China covering areas such as city gas distribution, water supply, waste management, clean energy solutions, and telecommunications.
Property development
The company engages in real estate ventures, holding a 15% interest in the International Finance Centre as well as a 50% stake in both Grand Promenade and Grand Waterfront developments within Hong Kong. These holdings are undertaken in collaboration with its principal shareholder.
Control acquisition by ultimate parent
On 3 October 2007, Henderson Land Development Co. Ltd (HLD) announced plans to gain control over Towngas by acquiring a 39.06% stake owned by its subsidiary Henderson Investment for HK$42.86 billion via cash payment and convertible notes. Minority shareholders of Henderson Investment were offered Henderson Land shares combined with cash compensation.
Although financial analysts generally regarded the bid positively, shareholder activist David Webb criticized it for not including a control premium and effectively transforming Henderson Investment into a shell entity.
To address concerns from minority shareholders, Henderson raised its cash offer to HK$2.24 per share on 7 November. By 7 December 2007, shareholder approval had been secured for the transaction.
As at 31 December 2021, HLD remained Towngas’ largest shareholder with a 41.53% stake. Lee Ka Kit and Lee Ka Shing—chairmen of Henderson Land Development—also hold chairman positions at Towngas.
Exploration activities
In 2008, Towngas partnered with Sunpec and Shaanxi Yanchang Petroleum to establish a joint venture aimed at developing block 3113 in Madagascar, leveraging technical support from Yunnan Kaiyuan Oil and Gas. This collaboration led to the discovery of light oil in November 2009. The combined estimated reserves for blocks 3113 and 2104 are approximately 5.6 billion barrels of oil alongside 66 billion cubic meters of natural gas.
Incidents
A significant explosion occurred at Towngas's West Point facility on 14 May 1934, resulting in 42 deaths, numerous injuries, and the destruction of five buildings.
On 11 April 2006, an explosion caused by a gas leak in Ngau Tau Kok claimed two lives and caused injuries to nine individuals.
See also
External links
- Articles with short description
- Companies listed on the Hong Kong Stock Exchange
- Service companies of Hong Kong
- Energy companies established in 1862
- Oil and gas companies of Hong Kong
- History of foreign trade in China
- Companies in the Hang Seng Index
- Companies in the S&P Asia 50
- Henderson Land Development
- Telecommunications companies of Hong Kong
- 1862 establishments in Hong Kong