Page 18 - 2024 CPC Corporation,Taiwan

Petrochemicals
The main CPC petrochemical production base is the Linyuan Petrochemical Plant, run by the Petrochemical Business Division. It includes the naphtha cracker and butadiene extraction units, producing ethylene, propylene, and butadiene products. The Aromatics extraction units produce benzene, toluene, and mixed xylene. Additionally, the RFCC units in the Taoyuan and Dalin refineries operating under the Refining Business Division, can produce propylene products.
The annual production capacities for the basic petrochemical raw materials of CPC are 1.07 million metric tons of ethylene, 1.194 million metric tons of propylene, 158,000 metric tons of butadiene, 274,000 metric tons of benzene, 321,000 metric tons of toluene and 507,000 metric tons of mixed xylene.
These petrochemical basic materials are crucial for downstream petrochemical products such as plastics, synthetic fibers, and synthetic rubber, representing the starting point of Taiwan’s petrochemical industry chain.
In recent years, we have continued to invest in the petrochemical business, aiming not only to enhance production capacity but also to diversify our product range. For instance, the New No.3 Naphtha Cracker project, initiated in 2005 with an investment of over NT$40 billion, has started to produce ethylene that meets specific standards in 2013, with an annual production capacity of 720,000 metric tons. In addition to supplying downstream businesses in the Linyuan Industrial Park, it also provides petrochemical raw materials to the Renda Industrial Park, whose supply was initially provided by the No.5 Naphtha Cracker, creating an annual economic benefit of nearly NT$100 billion.
Looking ahead, CPC will closely monitor market signals, timely adjust production capacity layout, and provide a stable and ample supply of petrochemical raw materials to support the industrial upgrade in Taiwan.
Refining-petrochemicals integration with low-carbon transformation
In response to the growth of the global electric vehicles market and supporting the government’s energy transition policy, CPC has conducted the integration of its refining and petrochemical businesses, reduced the production of gasoline and diesel, and has produced more chemicals. In addition, CPC has reduced the severity of pollution from its plants, decreased the energy consumption of its operations, and strengthened safety at its facilities. This has been through the supply of raw materials among different business units, and its plan to create a synergy of its resources and public facilities through high-degree integration. In addition, CPC is evaluating the implementation of carbon capture, utilization, and storage (CCUS) technology to establish a low-carbon operation.
To support the energy transition strategy, CPC is advancing the Industrial Upgrading and Transformation Project. This involves replacing an outdated ethylene plant with a new one boasting an annual production capacity of one million metric tons, thereby converting surplus oils into petrochemical products. CPC aims to create smart, clean, low-carbon, and environmentally friendly production plant. Its objective is to enhance the resilience of CPC’s supply chain across Taiwan, drive high-valued production for downstream industries such as domestic semiconductors, ICT, green energy, and medical sectors, and introduce innovative processes and 5G AIoT technology. With approval by the Executive Yuan on 13 May 2024, the total investment is estimated to be NT$106.2 billion, with production expected to start in July 2030.
16