NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

CERAWEEK-Taiwan's CPC to start building 3rd LNG terminal by mid-2019

Published 13/03/2019, 05:50 am
© Reuters.  CERAWEEK-Taiwan's CPC to start building 3rd LNG terminal by mid-2019
NG
-
LNG
-

* New Taoyuan terminal could start operations in early 2023

* Eyes new gas supplies from Russia Sakhalin, U.S. Alaska

By Florence Tan

HOUSTON, March 12 (Reuters) - Taiwan's state energy firm CPC could start building its third liquefied natural gas (LNG) import terminal by the middle of this year once it obtains all the required permits, a senior company official said on Tuesday.

The proposed terminal, at Taoyuan, northwestern Taiwan, could start operations in early 2023 with an initial capacity of 1 million tonnes per year (tpy), Jane Liao, chief executive of CPC's LNG business said on the sidelines of the CERAWeek conference in Houston.

The project's first phase of 3 million tpy will be used by state utility Taipower, she said.

Taiwan is the world's fifth largest LNG importer with an import volume of 16.8 million tpy in 2018. The island is boosting its LNG imports as it phases out nuclear and coal to generate electricity in the next decade.

Taiwan aims to have LNG import capability of 10 million tpy each in the country's north, central and south by 2027, Liao said, adding that CPC will continue to expand existing terminals at Taichung and Yung-An in Kaohsiung, southern Taiwan.

CPC is currently the only LNG importer in Taiwan and has long-term supplies from Australia, Qatar, Papua New Guinea and Malaysia. To diversify supplies, the company will start receiving LNG from the United States in 2021 after CPC inked a 25-year deal with Cheniere Energy LNG.A last year.

The company prefers long-term contracts, although spot cargoes accounted for about 15 percent of its annual imports, Liao said.

CPC is also eyeing new supplies from Russia's Sakhalin island in the Pacific, or the U.S. state of Alaska and may seek joint purchases with other buyers from Japan and South Korea, Liao said.

"We've been waiting for Sakhalin," Liao said, adding that the project would be ideal to supply north Asian buyers because of its proximity, while LNG shipments from Alaska to Taiwan will avoid potential congestion at the Panama Canal.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.