The Hong Kong and China Gas Company
Hong Kong's historic territory-wide town-gas utility, with expanding mainland China infrastructure and environmental-energy businesses.
Last updated October 14, 2026
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Overview
The Hong Kong and China Gas Company Limited, widely known by its trading name Towngas, is a Hong Kong-based energy and utility group founded in 1862. It began as a gas-lighting undertaking serving Victoria, the colonial-era urban centre of Hong Kong, and developed into the territory's sole supplier of piped town gas. The company is among Hong Kong's oldest listed enterprises and remains one of the city's most visible infrastructure businesses. Towngas's original service was coal-derived gas for public lighting, government facilities, commercial premises, and private customers. Its first generating plant was established at West Point and operated from the early 1860s. By the end of 1864, the company had installed approximately 24 kilometres of gas mains and 500 gas lamps. Gas service later expanded across Victoria Harbour to Kowloon, where residents had initially depended on candles and oil lamps. Four historic Towngas lamps on Duddell Street remain maintained by the company and form part of a declared monument in Hong Kong. The modern business is centred on production, importation, transmission, distribution, and retail supply of town gas. Natural gas is imported by sea from Australia and stored at the Dapeng liquefied natural gas terminal in Shenzhen under a long-term supply arrangement. A submarine pipeline links the terminal with Towngas's Tai Po production facility. The Tai Po plant produces the great majority of the company's Hong Kong town-gas output, while the Ma Tau Kok plant supplies the balance. The distribution network extends for more than 3,500 kilometres and serves about 1.8 million Hong Kong households, equivalent to roughly 85% of households, as well as commercial and industrial users. Beyond Hong Kong, Towngas has built a substantial mainland Chinese portfolio. Its projects include city-gas concessions and distribution systems, water services, waste treatment, environmentally oriented energy projects, and telecommunications-related infrastructure. Reference material describes more than 500 mainland projects, reflecting the group's shift from a single-territory gas utility toward a diversified urban-infrastructure platform. The group also participates in property development and investment in Hong Kong, including interests in the International Finance Centre, Grand Promenade, and Grand Waterfront. Towngas has explored upstream energy opportunities as well. In 2008 it entered a joint venture involving Sunpec and Shaanxi Yanchang Petroleum for exploration in Madagascar, with technical support from Yunnan Kaiyuan Oil and Gas. The venture reported a light-oil discovery in 2009. These activities sit alongside the group's longer-term emphasis on cleaner fuels, renewable and emerging energy, waste-resource utilization, and lower-emission infrastructure. The company's ownership structure has been closely associated with Henderson Land Development. In 2007 Henderson proposed transferring its substantial Towngas interest from Henderson Investment in a transaction that drew criticism from shareholder activist David Webb, who argued that the structure did not provide an adequate control premium and effectively privatized Henderson Investment. The offer was subsequently improved and received shareholder support. Henderson Land remained Towngas's largest shareholder, holding 41.53% of issued shares at the end of 2021 according to the cited reference material. Lee Ka Kit and Lee Ka Shing, chairmen of Henderson Land, also serve as Towngas chairmen in the referenced account. Towngas's history also includes serious industrial accidents. A gasometer explosion at West Point in 1934 killed 42 people and damaged nearby buildings. In 2006, a leaking-town-gas explosion in Ngau Tau Kok killed two people and injured nine. These incidents form part of the safety history of a utility whose operations involve gas production, high-pressure distribution, storage, and household use. Today, the brand combines the obligations of a regulated urban utility with a broader strategy focused on mainland expansion, infrastructure investment, property interests, and energy transition.
History
The company traces its origins to February 1862, when William Glen obtained a concession from Governor Sir Hercules Robinson to supply manufactured gas to Victoria. It was incorporated on 3 June 1862. The first plant, located at West Point near Whitty Street, was coal-fired and is described as the first gas-generating plant in Asia. It supplied lighting to public institutions, military facilities, offices, and hotels. By 3 December 1864, the company had laid roughly 24 kilometres of pipe and installed 500 gas lamps along major roads in Victoria. The initial network served Hong Kong Island. Kowloon continued using candles and oil lamps until gas service crossed the harbour 28 years later. The company remained operated from Britain until 1954, when local firm Wheelock and Marden acquired a majority shareholding and moved the registered domicile from the United Kingdom to Hong Kong. This change marked an important stage in the company's localization and its development as a Hong Kong public utility. The historic lighting business gradually became a household and industrial energy network. Towngas now operates two principal Hong Kong production plants, at Tai Po and Ma Tau Kok. Natural gas imported from Australia is received at the Dapeng LNG terminal in Shenzhen and transported through a 34-kilometre submarine pipeline to Tai Po. Treated landfill gas is also used as a fuel source to reduce greenhouse-gas emissions. The Hong Kong network extends beyond 3,500 kilometres and supplies around 1.8 million households, as well as commercial and industrial customers. From the late twentieth century onward, Towngas expanded beyond its original Hong Kong franchise. Mainland projects have included city-gas systems, water supply, waste treatment, telecommunications, and emerging environmentally friendly energy. The group has been associated with more than 500 mainland projects in the cited reference material. It has also pursued property investments, including a 15% interest in the International Finance Centre and a 50% interest in Grand Promenade, as well as participation in Grand Waterfront. The group entered upstream exploration in Madagascar in 2008 through a venture with Sunpec and Shaanxi Yanchang Petroleum, supported technically by Yunnan Kaiyuan Oil and Gas. The venture announced a light-oil discovery in 2009. Although exploration is distinct from Towngas's core distribution business, it illustrates the company's historical willingness to test additional energy activities. Ownership and governance became a major corporate issue in 2007. Henderson Land sought to obtain control of Towngas through a transaction involving Henderson Investment's 39.06% stake. Critics argued that the initial structure transferred valuable control without a sufficient premium to minority investors and left Henderson Investment close to a shell company. Henderson later enhanced the cash terms, and shareholders approved the revised proposal in December 2007. Henderson Land subsequently became Towngas's largest shareholder. The cited reference states that it held 41.53% of Towngas at 31 December 2021. Safety incidents have also shaped the company's historical record. In May 1934, a gasometer explosion at West Point killed 42 people and damaged five buildings. In April 2006, leaking town gas caused an explosion in Ngau Tau Kok that killed two people and injured nine. These events underscore the importance of engineering controls, leak detection, maintenance, emergency response, and public safety in the company's core business. Towngas continues to combine its historic role as Hong Kong's exclusive territory-wide town-gas supplier with diversified infrastructure and energy operations in mainland China. Its current strategic identity is therefore broader than gas production alone: it includes network utilities, urban services, environmental projects, property interests, and efforts to develop lower-carbon energy solutions.
- 2009
Light-oil discovery reported in Madagascar
[1]The Madagascar venture reported a light-oil discovery in block 3113.
- 2008
Madagascar exploration joint venture formed
[1]Towngas agreed to participate in a joint venture to explore Madagascar block 3113.
- 2007
Henderson gains shareholder approval for control transaction
[1]After improving the offer terms, Henderson secured approval for the transaction involving its Towngas stake.
- 2006
Ngau Tau Kok explosion
[1]A leaking-town-gas explosion killed two people and injured nine.
- 1954
Hong Kong ownership and domicile transition
[1]Wheelock and Marden acquired a majority shareholding and the registered domicile moved from Britain to Hong Kong.
- 1934
West Point gasometer disaster
[1]A gasometer explosion killed 42 people and damaged five buildings.
- 1892
Gas service reaches Kowloon
[1]Gas infrastructure was extended across the harbour to Kowloon, which had previously relied largely on candles and oil lamps.
- 1864
First Hong Kong gas network begins operation
[1]The company had installed about 24 kilometres of mains and 500 gas lamps in Victoria by December.
- 1862
Gas-supply concession granted and company incorporated
[1]William Glen obtained a concession to supply gas to Victoria, and the company was incorporated on 3 June.
Products and positioning
A long-established Hong Kong utility and urban-infrastructure group positioned around reliable piped-gas service, cleaner energy, mainland expansion, and sustainable infrastructure.
Piped gas utility · 1862
Hong Kong town gas
Towngas's core offering is territory-wide piped town gas for homes, businesses, and industrial customers in Hong Kong. The gas is produced mainly at Tai Po, with additional output from Ma Tau Kok, and distributed through a network exceeding 3,500 kilometres. Its principal components are hydrogen, methane, carbon dioxide, and a small amount of carbon monoxide. The service supports cooking, water heating, commercial operations, and industrial applications.
Natural gas
Natural-gas supply and infrastructure
The company imports natural gas from Australia by sea and receives it at the Dapeng LNG terminal in Shenzhen. A 34-kilometre submarine pipeline connects the terminal with the Tai Po plant, integrating imported gas into the Hong Kong town-gas production and distribution system.
Consumer appliances
Gas appliances
Towngas markets and supports gas-use appliances associated with residential and commercial supply, including cooking and water-heating equipment. The reference material identifies gas appliances as part of the company's typical offering but does not provide a complete current product catalogue.
Urban utility infrastructure
Mainland city-gas services
Through investments and operating projects in mainland China, the group develops and manages city-gas distribution systems and related urban utility infrastructure. These projects form part of a broader portfolio that also includes water supply, waste treatment, environmental energy, and telecommunications-related activities.
Controversies
2007
Criticism of Henderson's Towngas control transaction
Shareholder activist David Webb criticized the proposed transaction as undervaluing control and resembling a back-door privatization of Henderson Investment. The offer was later improved and approved by shareholders.
2006
Ngau Tau Kok gas-leak explosion
Leaking town gas caused an explosion in Ngau Tau Kok that killed two people and injured nine.
1934
West Point gasometer explosion
A major explosion at the company's West Point plant killed 42 people, injured additional people, and gutted five buildings.
Brand decisions
2008
Entry into Madagascar oil and gas explorationStrategyBackground
Towngas sought additional upstream energy opportunities beyond its utility and city-gas activities.
Action taken
It joined Sunpec and Shaanxi Yanchang Petroleum in a venture to explore Madagascar block 3113, with technical assistance from Yunnan Kaiyuan Oil and Gas.
Aftermath
The venture reported a light-oil discovery in 2009; the reference does not establish the later commercial outcome.
2007
Henderson pursues control of TowngasM&ABackground
Henderson Land sought to acquire the 39.06% Towngas interest held by its subsidiary Henderson Investment.
Action taken
The proposed consideration comprised cash and convertible notes; after criticism, Henderson increased the cash terms before seeking shareholder approval.
Aftermath
Shareholders approved the revised transaction in December 2007, and Henderson Land became Towngas's largest shareholder.
Value attributed to the 39.06% Towngas stake. HK$42.86 billion (2007)
Recent events
Hong Kong and China Gas and CATL announce a joint venture[2]
At the signing ceremony for their strategic agreement, Hong Kong and China Gas and CATL announced the establishment of a joint venture focused on energy technology.
Hong Kong and China Gas and CATL enter strategic partnership[2]
Hong Kong and China Gas and CATL entered a strategic cooperation agreement covering areas including energy internet construction, energy-storage solutions, and investment.
Sources3 sources
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