Page 26 - 2022 CPC Corporation,Taiwan

Downstream Operations Gas supply by area increases system security In compliance with government policies to phase out nuclear power plants and to create an environmentally- friendly, low-carbon environment, CPC plans to set up three gas-fired generating units at Datan Power Station. To generate abundant energy for Datan Power Station, the commodity sectors in the north and other customers of the power station, CPC plans to set up a third LNG terminal in Kuantang Industrial Centre, comprising reception facilities which can hold up to three million metric tons of import quantum, two LNG storage tanks each of 160,000 kiloliter capacity; gasification and gas supply facilities to connect with the existing gas supply system. CPC’s Third LNG Receiving Terminal project got under way in 2016 and is currently scheduled to come on stream in June 2025. In the future, with the three terminals-one each in northern, central and southern Taiwan-supplying natural gas to users in their respective areas, there should be some reduction in the cost and risk of transmitting gas over long distances. The figure-of-eight combined undersea and terrestrial gas pipeline network will enhance both the safety and stability of gas supply through its transfer and backup functions. The completion of this third LNG receiving terminal project will enable CPC to construct and operate a national level natural gas supply system that is fully functional, stable and safe. Towards net zero, introducing carbon neutral LNG As a first step toward energy transition and net zero, CPC received its first carbon neutral LNG cargo in 2020. To ensure the credibility of the net zero products, high quality nature-based carbon credits have been used to offset the overall greenhouse gas (GHG) emissions of the relevant LNG cargo, including exploration, transmission, liquefaction, shipping, regasification, distribution and end-use. In 2021, CPC received the PAS 2060 third-party validation report, a globally recognized carbon neutrality standard. In the future, CPC will keep endeavoring in importing carbon neutral LNG, not only to reduce our carbon intensity, but also to provide a net-zero solution for our customers in Taiwan. Global strategy for a stable gas supply CPC has devoted considerable efforts diversifying its sources of LNG imports to ensure a stable supply of natural gas for Taiwan. The source of LNG imports is all over the world, including the Middle East, the Asia-Pacific region, Russia, Australia, North America, Central and South America, Africa and Europe. In addition to mid to long-term LNG procurement contracts, CPC acquires additional supplies through short-term/ spot transactions to achieve the security and diversification of gas supply in Taiwan. In 2021, CPC imported most of its LNG from Qatar, Papua New Guinea, Australia, the United States and Russia.