Page 23 - CPC 2018 Annual Report

DOWNSTREAM OPERATIONS 21
2,149 kilometers
8 supply centers 44 distribution stations
from Port of Taichung and to build a second pier in Taichung Port, in order to enhance the Taichung terminal's LNG unloading capacity and hence gas supply stability. After the project is completed in 2022, the annual capacity of the Taichung terminal will be boosted by another 1.0 million tons.
TOWARDS A NATIONWIDE NATURAL GAS PIPELINE NETWORK
CPC has constructed a natural gas transmission and distribution system in western Taiwan comprised of approximately 2,149 kilometers of terrestrial trunk pipeline, extending from Pingtung in the south to Keelung in the north, which includes eight supply centers and 44 distribution stations. Current plans are centered on the goal of constructing interlocking ring-shaped networks to produce a figure-8 configuration; this will involve laying down a 238-kilometer undersea pipeline from Yongan to Tongxiao and a 500-kilometer terrestrial pipeline onwards from Tongxiao to Taoyuan, creating a circular network in Taiwan. In addition, after the 36-inch undersea gas pipeline from the Taichung LNG plant to Datan has come on stream, it will be linked with terrestrial pipelines in central and northern Taiwan to form another circular formation – thus completing the planned island- wide, integrated ‘figure-8’ natural gas transmission network.
In the context of Taiwan’s new energy policy that calls for gradually phasing out nuclear power and building a low-carbon environment partly run (20%) on renewable energy, Taipower is planning the addition of another 4 natural gas-fired generators to its Datan Power Plant. In a parallel development noted above, CPC is now planning construction of a third LNG receiving
terminal, located in the Guantang Industrial Area in northern Taiwan, to supply both the expanded fuel uptake of the Datan plant and growing demand from residential, industrial, and other energy users in the region. Apart from the LNG plant itself, the project will involve constructing a dedicated LNG pier and building facilities for handling the import of 3.0 million tons of LNG each year. The new works will include four 160,000-kiloliter LNG storage tanks as well as vaporization and distribution plants that will be connected to the existing natural gas distribution system. The total investment entailed will amount to NT$60.08 billion.
The third LNG receiving terminal project formally commenced in 2016, with full operation scheduled by 2023. Its capacity may later be expanded up to 6.0 million tons of LNG annually to meet higher demand. With its three LNG receiving terminals located in the north, center and south of the island, CPC stands to reap economies of scale that will lower both the costs and risks of importing natural gas in the future. The existing figure-8 undersea and terrestrial pipeline system will enable mutual support by its components in transporting natural gas around Taiwan and raise the level of both operational safety and stability of supply.
CPC'S DIVERSIFICATION OF ITS NATURAL GAS SOURCES MAKES FOR A STABLE SUPPLY
CPC has devoted much effort to diversifying its liquefied natural gas (LNG) sources to ensure a reliably stable supply of natural gas for Taiwan. This has entailed signing multiple LNG import contracts for procurement around the globe – including the Middle East, Southeast Asia, Northeast Asia, Australia, North America, Africa and Europe as well as other areas.
2017 Natural gas transmission and distribution system comprised of
of terrestrial trunk pipeline