Page 5 - 2021 CPC Corporation,Taiwan

Safety and environment protection are the foundation of our business development. In 2020, CPC continued to improve its system, equipment and execution of industrial safety measures and, through organization restructuring, set up a dedicated unit responsible for the improvement of maintenance, operation and management of long-distance pipelines and facilities in order to upgrade safety practices for operation. At the same time, CPC implemented an individual responsible region system and supervised each department to improve professional capabilities of their on-site supervisors with thorough in-depth training aimed at increasing risk awareness of all employees. In respect of environment protection, its efforts included re-inspection and testing of old equipment such as storage tanks and pipelines for risk control, further reduction of VOC leakage rate of its equipment components, compliance with government policy of reducing greenhouse gas emission with continued implementation of its voluntary greenhouse gas reduction plan; compliance with the Renewable Energy Development Act to create units responsible for related issues; undertaking of several important tasks to prevent pollution of wharves, seashores, and oceans nearby our operation sites throughout 2021.
Regarding the trend of the global energy market development, domestic sectors are undergoing the key stages of transition, in which the repertoire of energy selections further limited by the COVID-19 pandemic. CPC has not only ensured stable supply of oil and natural gas to domestic consumers to cope with the important role of natural gas during the transition; but also expanded existing and new LNG import, storage and transmission facilities, to optimize the supply and transmission system across northern, central, and southern Taiwan for improved operational capacity. As conversion of excessive petroleum and diesel fuels to petrochemical raw materials will inevitably become a trend of global petroleum refining industry in the future, CPC has adopted COTC (Crude Oil to Chemical) strategy to optimize oil and petrochemical refinery integration and set up stage-wise plans to build up facilities to produce high-value derivatives to further increase product value. In response to reduced demand for automotive fuels, CPC will take advantage of its operation of Smart & Green e-stations and its comprehensive distribution network to accelerate transformation of gas stations with a vision for future development.
As “Net Zero Emission by 2050” has become an international consensus, different countries have set the deadlines for selling gasoline-automobiles. International Big Oils have successively invested in the development of green energy, and Big Tech companies of smart phones and social network have announced their plan to enter the market of electric vehicles, thereby shifting the energy consumption structure gradually. To prepare for such changes, CPC has drawn up forward-looking strategies, such as speeding up the integration of R&D resources and projects to grasp market opportunities through cooperation with domestic
and overseas industries; CPC has also utilized its core technologies to work with external parties for the integration of software and hardware resources to achieve industrial upgrading, including the project of the demonstration facility for soft carbon production. In compliance with government policies
regarding green energy, CPC has sped up the research, assessment, and development
of geothermal resources at peripheral areas of Mt. Datun and evaluated the feasibility of geothermal power generation in the Tuchang area of Yilan, with or without partnering with private sectors, to bring along transformation of the company.
During the wintertime of 2020, the COVID-19 pandemic has worsened again, and many countries have tightened their epidemic prevention measures. Looking forward to the following year, the rapidness of vaccine adoption will determine the degree of recovery in terms of economic and production activities. Given uncertainties caused by the pandemic and unpredictability
of global energy prices, CPC is still facing high risks with regards to business operation. In addition to the implementation of epidemic prevention measures to safeguard the health of our employees and maintain steady operation of our facilities, CPC also needs to stay ahead of market
trends and grasp changes in energy consumption models caused by
lifestyle alteration from the pandemic to make dynamic adjustments
to its operation model, in order to improve performance and ensure sustainable operation.
President
double as acting Chairman
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The Chairman's Preface