Page 16 - CPC 2018 Annual Report

14 CPC Corporation, Taiwan 2018
DOWNSTREAM
OPERATIONS
ENSURING STABILITY IN SUPPLY: INNOVATION AND INVESTMENT BOOST QUALITY AND QUANTITY
IMPORTING & REFINING
CPC aims to ensure the stability of its supply both by purchasing crude oil under long-term contracts and by utilizing vendors dispersed around the world. In 2017 its crude imports amounted to 140.65 million barrels: imports from the Middle East accounted for 56%, Africa 20.92%, Southeast Asia 2.74%; the remaining 20.34% came from other locations. In recent years, increasingly stringent domestic environmental standards have mandated that low-sulfur crude makes up a certain percentage of total imports.
To facilitate its handling of these vitally-important shipments, the company has set up large tanker offloading pontoons just offshore its refineries – at Shalun near Taoyuan in the north of Taiwan and Dalinpu near Kaohsiung in the south. In addition, purpose-built oil tanker wharves have been constructed at Kaohsiung, Taichung and Shen’ao ports.
SHOULDERING RESPONSIBILITY –
MEETING THE DEMAND FOR REFINED PRODUCTS
CPC’s two operating oil refineries at Taoyuan and Dalin currently have a combined daily refining capacity of 500,000 barrels. In order to honor a commitment made to the government some years back to relocate the Kaohsiung refinery complex – which had a daily capacity of 200,000 barrels and an annual capacity of 50,000 tons for storing refined products and chemicals – it was shut down at the end of 2015. In order to avoid disrupting the supply of refined products on to the domestic market, its operations are being progressively transferred to the Dalin Refinery – which was already undergoing capacity expansion to meet rising internal demand for refined products. The job of filling the petrochemical raw material supply gap consequent to the Kaohsiung refinery closure has been transferred to a naptha cracker in CPC’s Linyuan petrochemicals complex.
Southeast 2.74% Asia
20.34%
Other Locations
140.65
56%
million barrels
2017 TOTAL CRUDE OIL IMPORTS
Middle East
Africa
20.92%