The supplier anticipates that this trend will continue, whereas economists link reduced consumption to shifting lifestyles, such as greater travel across the mainland.
In 2024, gas consumption in Hong Kong remained under the pre-pandemic levels for six consecutive years. The provider anticipates this trend will continue, as economists suggest a "structural decrease" in use is tied to shifts in lifestyles, such as more trips to mainland China.
The city's only gas provider, the Hong Kong and China Gas Company, commonly referred to as Towngas, similarly connected its prediction with the anticipated mild temperatures for this year.
Professor Lee Shu-kam, who leads the Department of Economics and Finance at Shue Yan University, highlighted a "structural decrease in gasoline sales" within the city.
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An crucial aspect is the weak economy. With a decrease in tourism, stores end up using less fuel," Lee explained. "However, what holds greater significance is that post-pandemic, numerous individuals have started spending more within their own country.
For example, individuals who are 60 years old or older can use railway services for free in Shenzhen by showing their Home Return Permits, passports, or other identification documents provided by the local government, as stated on a site run by the Constitutional and Mainland Affairs Bureau.
The complimentary transportation rates were described as "highly appealing" by Lee. However, he also noted that once you're there, having meals becomes essential.
In 2024, gas sales in Hong Kong amounted to 27,159 terajoules, which represents an 8.1 percent decrease compared to the levels seen in 2018. This follows a continuous decline over five years until this recent uptick of 0.1 percent, as reported by Towngas.
The firm projected that natural gas sales were likely to increase modestly to 27,200 terajoules in 2025, which represents an 8 percent decrease from the 29,550 terajoules sold in 2018 prior to the onset of the pandemic.
A spokesperson for the gas firm stated to the Post that they anticipate the gas usage level in 2025 will stay steady at approximately 27,200 terajoules, assuming there are no major shifts in the daily habits of Hong Kong residents and considering the mild climate projected for 2025,
The gas firm highlighted "various elements impacting gas sales in Hong Kong throughout recent years, encompassing periods of pandemic, post-pandemic challenges, along with the subsequent recovery phase."
"Generally, we are witnessing severe effects of climate change, with temperature records in Hong Kong showing increases compared to earlier years from 2021 through 2023," stated the spokesperson.
Consequently, gas consumption dropped as a result of reduced usage for heating water.
Home gas consumption has decreased continuously over the past four years, dropping to 14,437 terajoules in 2024. This figure represents 53 percent of overall usage, as reported by the gas company and highlighted in their investment briefing for the fiscal year-end 2024 outcomes.
The spokesperson stated that residential gas usage was impacted by "unprecedented worldwide temperature highs" in the previous year and the tendency of residents of Hong Kong traveling to Mainland China, resulting in a "minor decline of 1.4 percent."
The representative mentioned that gas usage in households rose by 11 percent compared to the previous year, totaling 16,685 terajoules in 2020 as a result of pandemic-related limitations.
However, by 2023, once these restrictions were eased and individuals could resume their international trips, natural gas consumption within households dropped by 8.4 percent compared to the previous year, totaling 14,648 terajoules.
Lee from Shue Yan University further pointed out that the increase in food delivery services and households with fewer members, sometimes as few as two individuals, opting for dining out rather than cooking at home has also led to structurally reduced consumption of gas.
Lee additionally pointed out that the significant migration of numerous households with children, who primarily use natural gas for cooking and bathing, has also contributed to this decrease.
In the meantime, Vera Yuen Wing-han, an economics lecturer at the University of Hong Kong, noted that there has been "a move toward electrical devices."
Yuen noted that the increased adoption of electric heaters and stoves is significantly driven by shifts in contemporary home layouts, including open-plan kitchens and studio flats.
Such designs usually comply with fire safety rules that restrict or prohibit the usage of open flames.
In 2024, industrial consumption represented 7 percent of the overall usage, marking an increase of 107 terajoules attributed primarily to heightened activity in aviation catering and laundry facilities, as reported by the gas company.
Significantly, the commercial usage of gas varied alongside the nominal GDP, increasing in 2021, 2023, and 2024, whereas it declined in 2020 and 2022.
In 2024, commercial gas usage represented 40 percent of the overall consumption and kept increasing.
This improvement was fueled by a rebound in tourism-associated industries, with hotels seeing an increase of 66 terajoules and theme parks experiencing a rise of 20 terajoules in their natural gas consumption. Additionally, hospitals and social welfare organizations witnessed a significant boost of 137 terajoules in energy use.
The spokesperson stated that an increase in use observed in 2021 was connected to the city’s voucher program implemented during the pandemic, aimed at boosting local expenditures.
However, in 2020, commercial use declined by 17.7 percent to reach 11,262 terajoules.
"The catering sector was considerably impacted during the pandemic era and throughout the recovery phase," stated the spokesperson for the gas company.
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The article initially appeared on the South ChinaMorning Post (www.scmp.com), which is the premier source for news coverage of China andAsia.
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