Page 22 - CPC 2018 Annual Report

20 CPC Corporation, Taiwan 2018
NATURAL GAS SUPPLY
CPC ENSURES TAIWAN'S VITAL NATURAL GAS SUPPLY
CPC’s promotion of natural gas as the fuel of the future, in keeping with Taiwan’s policy aim of energy diversification, is based on its inherent advantages in terms of high thermal efficiency, low pollution profile and convenience for safe handling. A new era of clean energy for Taiwan was ushered in with the completion of the country’s first LNG receiving terminal in Kaohsiung’s Yongan District in 1990. To cope with growing demand, its capacity was later boosted to 4.5 million tons annually; and a second-phase expansion project was completed in December 1996.
A third-phase expansion project to satisfy demand for natural gas from independent power producers as well as urban end-users in northern Taiwan commenced in July 1996. In addition to terminal-area expansion, this involved laying a 36-inch diameter, 238 km- long undersea pipeline from the Yongan plant to Tongxiao. Its completion in December 2002 expanded CPC’s then annual LNG handling capacity to 7.44 million tons.
In the years since those projects were completed, a second terminal has been built at Taichung – it came on stream in 2009 - and planning of a third plant in northern Taiwan is now under way.
CPC IS BUILDING RELIABILITY INTO NATURAL GAS SUPPLY
Taiwan’s aforementioned second LNG receiving terminal, sited close to Taichung's harbor and with an annual capacity of 3.0 million tons, became fully operational in 2009. It was designed to supply natural gas to Taiwan Power Company’s (Taipower) Datan Power Station as well as industrial firms and household users in northern and central Taiwan. This project entailed building three 160,000-kiloliter LNG storage tanks, gasification and gas supply facilities and a 135-kilometer, 36-inch sea/land long-distance transportation pipeline from Taichung Harbor through the Tongxiao distribution center to the Datan power plant. The current Taichung LNG Terminal Phase II Investment Project calls for the construction of three additional 160,000-kiloliter above-ground storage tanks and another gasification facility at the terminal itself; a 26-inch, 21.8 km terrestrial gas pipeline between the terminal and the Wuxi Separation Station; and a further switching station linked with the existing 26-inch pipeline at the Wuxi site. Once completed in 2018/2019, the project will boost the annual capacity of the Taichung terminal to over 5.0 million tons and ensure a stable, dependable supply of gas during the winter monsoon period as well as greater storage capacity in terms of the number of days’ supply on hand.
In addition, in the context of the government's non-nuclear homeland and greenhouse gas reduction policies, the MOEA's Bureau of Energy plans to reach the goal of 50% of total electricity generated from natural gas in or by 2025. In preparing for this, CPC plans to lease West 11 and 12 terminals