Importance of LNG –CPC Actions

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Importance of LNG – CPC Actions Chairman Chein Tai CPC Corporation, Taiwan 22nd October 2018

Transcript of Importance of LNG –CPC Actions

Importance of LNG – CPC Actions

Chairman Chein TaiCPC Corporation, Taiwan

22nd October 2018

Hydro1.2%

Oil4.7%

Renewable4.6%

Nuclear8.3%

Gas34.6%

Coal46.6%

 0.0%

Source: Energy Statistics Handbook 2017. Bureau of Energy, ROC. 

Coal30%

Renewable 20%

Gas 50%

Nuclear‐free homeland and energy transition

In order to achieve the target of nuclear‐free homeland by 2025: 

The percentage of natural gas for power gen will increase from 34.6% in 2017 to 50% in 2025. 

Taiwan’s LNG Demand will reach 22.91 MTPA in 2025. (Forecast by Bureau of Energy ).

(*Import quantity of LNG: 2017 ‐ 16.51 million tons; 2018 ‐ 16.90 million tons )

Energy Transition

The Electricity Mix in 2017 The Target in 2025

Procurement Strategy: Diversification

Diversified Sources

DiversedPricing Indexes

Portfolio  term 

contracts

99% of nature gas consumption relies on LNG import. The prime goal of Taiwan’s energy policy : Security of supply Long‐term LNG contracts with diversified supply sources. Supplement by short‐term/spot procurement.

• Upstream participation• Joint procurement

• Co‐chartering vessels 

• Downstream participation• Cargo diversion

Gas Field LiquefactionPlant

LNGStorage Tank

LNG Tanker LNGStorage Tank

Vaporizers Pipeline System

Collaboration within LNG Value Chain 

Regional cooperation in various modes

Transparency

Views on progress of a transparent LNG Market

Flexible and transparent market

High liquidity commodity

Reliable benchmark 

price

Decontrolled pricing

Storage/ transmission infrastructure 

in place

CPC Corporation, Taiwan

Thank you for your attention.