Page 16 - 2024 CPC Corporation,Taiwan

Undertaking the Responsibility to Ensure Stability in Domestic Supply
Importing & Refining
2023
Imported oil source distribution
Other
0.62%
USA
58.75%
As Taiwan’s domestic production of crude oil yields only extremely low volumes, CPC needs to import virtually all of the crude it refines to supply the domestic market. To ensure stability, CPC works to both maximize procurement on long-term contracts and diversify its sources of crude oil.
In 2023, crude oil imports totaled 135.37 million barrels, with 35.94% originating from the Middle East, 58.75% from the USA, and 4.69% from Africa. In response to increasingly stringent environmental standards, imports of low-sulfur crude oil continue to constitute a significant proportion.
To import crude oil, CPC has installed offshore mooring pontoons to unload large oil tankers at Shalun in Taoyuan and at Dalinpu in Kaohsiung. The company has also built dedicated loading/unloading berths for tankers in the ports of Kaohsiung, Taichung and ShenAo.
Middle East
14
Africa
4.69%
In fulfillment of the government’s commitment relocate industrial facilities, operations at the Kaohsiung Refinery ceased in late 2015. Its crude oil refining activities were moved to the Dalin Refinery, which underwent expansion to offset the reduced domestic oil supply resulting from closure and production cutbacks at the Kaohsiung Refinery. The newly constructed refinery boasts daily capacity of 150,000 barrels for the atmospheric crude oil distillation unit (CDU), 50,000 barrels for the condensate fractionating unit (CFU), 40,000 barrels for the diesel hydro- desulfurization (DHDS) unit, and 30,000 barrels for the kerosene hydro-desulfurization (KHDS) unit. Operations commenced in 2018, ensuring a secure supply of raw materials essential for the continuity and advancement of downstream petrochemical industries. In addition, the Dalin Refinery increased its crude oil refining capacity from 300,000 to 400,000 barrels per day, and CPC raised theirs to 600,000 barrels per day. Supplementary petrochemical materials were sourced from the New-No.3 Naphtha Cracker in Linyuan and through imports.
In response to the increasing demand for higher environmental and quality-of-life standards from Taiwanese consumers, as well as diverse fuel requirements, CPC has embarked on the construction of various refining facilities. These include reforming plants, isomerization plants, hydrodesulfurization units for gasoline, diesel, and coal, aviation fuel treatment facilities, isomerization processes, and heavy oil catalytic cracking plants. These initiatives are in accordance with regulations mandated by the Ministry of Environment, which stipulate reducing the sulfur content in gasoline and diesel to below 10 parts per million (ppmw), aromatic content in gasoline to below 35 vol.%, and olefin content to below 18 vol.%. This initiative aims to enhance production efficiency and provide Taiwanese consumers with higher-quality, environmentally friendly petroleum products.
Adhering to the principle of “Customer First, Quality Supreme,” CPC maintains stringent control over the quality of its petroleum products. The corporation has established rigorous internal standards and implemented a silver strip corrosion test at its refining plants. Furthermore, weekly-scheduled meetings are conducted to meticulously review operations, ensuring compliance with regulatory standards for outgoing oil products. Proactive alerts are issued if product quality approaches the lower limit of internal specifications, facilitating prompt corrective actions at the refinery. In addition, CPC is gradually implementing a laboratory management system at its fuel supply centers to ensure the thorough execution of oil sampling operations, equipment maintenance, and storage procedures in accordance with SOPs. The loading of oil into tank trucks is contingent upon samples being rigorously tested and approved at the oil filling ports. Moreover, the Refining & Manufacturing Research Institute (RMRI) conducts monthly sampling and testing at refineries, and quarterly inspections at gas stations, fuel supply centers, and other facilities to uphold stringent standards of oil quality.
Currently, CPC’s operating refineries in Taoyuan and Dalin can refine
600,000 barrels of crude oil per day. In particular, the Dalin Refinery has
four offshore mooring pontoons and ports with which to unload imported crude oil and export oil products. It has a refining capacity is 400,000 barrels per day, while the Taoyuan Refinery’s capacity is 200,000 barrels per day. In 2023, CPC’s refined product output totaled 8.611 million kiloliters of gasoline, 2.308 million kiloliters of aviation fuel (JP-A1), 5.460 million kiloliters of diesel, 1.543 million kiloliters of fuel oil, and 359,000 metric tons of LPG.
Improving quality and offering better products
35.94%