Page 46 - 2025 CPC Corporation,Taiwan

Expanding into Blue Ocean Advancing Green Energy CPC’s Affiliates CPC’s joint venture strategy can be summarized as “on the foundation of core business, active expansion into fields of petrochemicals (upstream and downstream), new energy, high value-added petrochemicals and international investments.” The company now sets out to selectively introduce patented technologies that will be incorporated with its own feedstock for petrochemicals to deliver high value-added products in order to boost the bottom line. As of 31 December 2024, total investment on the 17 joint venture entities was NT$25.667 billion, generating an investment income of NT$1.658 billion in 2024 and cash dividends of NT$1.94 billion over the same period. CPC’s current 17 affiliates can be divided into five main categories: petroleum products, petrochemicals, natural gas, implementation of government policy, and energy transition. Of the 17, nine are based in Taiwan and eight overseas. The principal entities are briefly described as below. China American Petrochemical Co. Ltd. (CAPCO) Established in 1976, CAPCO is the major supplier of purified terephthalic acid (PTA) to Taiwan's polyester textile industry. Its plant is located in the Taichung Harbor in the island's central region. CPC holds 38.57% of the company's equity, including preferred stock. In order to maintain CAPCO’s competitiveness, CAPCO production units continue carrying out improvement programs with the aim of lowering production costs and increasing productivity. Dai Hai Petrol Corp. (DHP) Established in 1994, with CPC holding 35% of the equity, DHP is headquartered in Haiphong, Vietnam. It has a branch station in HaTay province. DHP mainly engages in the storage, transportation and supply and marketing of LPG in northern Vietnam. Chun Pin Enterprise Co., Ltd. (CPEC) Chun Pin Enterprise Co. was established in 1998, with CPC holding 49% of the equity, to set up and operate a storage and transportation center as part of the Phase II development of Taipei Harbor. CPEC is engaged in the storage and transshipment of petroleum and petrochemical products and is currently engaged in formulating a plan to move its storage tanks to reclaimed land in the outer harbor of the Port of Taipei. KuoKuang Power Co., Ltd. (KKPC) KuoKuang Power Co. was established in 2000, with CPC holding 45% of the equity, under the government’s policy of opening up power generation to private operators in order to alleviate the power supply shortfall in northern Taiwan. The project entailed construction and operation of a natural gas-fired power plant with an installed capacity of 480 MW and located in the Guishan District of Taoyuan City. Nimic Ship Holding Co., Ltd. (NSHC) Established in 2006, with CPC holding 45% of the equity, NSHC has four ship-owning companies under its umbrella. NSHC owns four LNG carriers, Taitar fleet, engaged in transporting LNG from QatarEnergy LNG S(2). Taitar fleet has adopted low-sulfur fuel oil and ballast water management according to IMO’s new regulations and conventions and has been ready to comply with EEXI & CII since 2023. Nimic Ship Management Co., Ltd. (NSMC) Established in 2006, with CPC holding 45% of the company's equity, NSMC is responsible for operation and management of the four LNG carriers, Taitar fleet, owned by NSHC. NSMC has facilitated the implementation of modifications enabling Taitar fleet to adopt low-sulfur fuel oil and ballast water management system according to IMO’s new regulations and conventions. It also ensured compliance with EEXI & CII since 2023. Moreover, NSMC has maintained an ongoing partnership with NTOU and NKMU since 2010, aimed at developing a big pool of Taiwanese seafarers. Global Energy Maritime Co. (GEMCO) Established in 2011, with CPC holding 48% of the company’s equity, GEMCO has built three double-hulled VLCCs with a capacity of 300,000 DWT and a double-hulled LR1 vessel with a capacity of 80,000 DWT, engaged in shipping crude oil and petroleum products. In compliance with IMO’s environmental protection regulations, GEMCO has completed retrofitting of the scrubber system for VLCCs. Ichthys LNG Pty Ltd (ILPL) Established in 2011, with CPC holding 2.625% of the company’s equity, ILPL pipes natural gas from Australia’s offshore Ichthys field to the onshore gas liquefaction plant near Darwin for the production of LNG, LPG and condensate. The LNG plant was completed and operational in November 2018. Maxihub Company Ltd (MAXIHUB) Established in 2014, with CPC holding 40% of the equity since 2016, MAXIHUB plans to build a wharf, tank farm and lubricant blending factory in Dong Nai Province, Vietnam. The company was founded to manufacture and process lubricating oils, base oil, and solvent chemicals and also provide the required related storage and warehouse services. Completion of the plant is expected by the end of June 2026, with commercial operations to commence following the acquisition of the jetty occupancy and port operation permits. QatarEnergy LNG NFE(3) Established in 2021, with CPC holding 5% of the company’s equity, the company is one of the world largest LNG producers. NFE(3) expansion project is currently under construction and is expected to commence commercial operation of train 1 in 2026. The investment aims to secure a diverse and stable supply of LNG for CPC and strengthen CPC’s long-term cooperation with Qatar. Formosa 4 International Investment Co., Ltd (Formosa 4) Established in 2021, with CPC holding 15% of the company’s equity, Formosa 4 is the first company that CPC invested in the renewable energy industry. The investment is in line with the CPC’s Net Zero strategy. Formosa 4 offshore wind farm aims to achieve commercial operation in 2028. 44