Taipower seeks to build its own LNG terminal

Taiwan’s state-owned utility Taipower may decide to build its own LNG import terminal independent of the one government-led energy company CPC was tasked to construct, several market sources in the region have said.

The plan would be the latest step in Taipower’s attempt to start buying LNG on its own accord. Taiwan as a whole expects its LNG demand eventually to rise to 11.4m tonnes by 2025, up from nearly 9m tonnes in 2015, making it one of the only bright spots for LNG demand in Asia.

Taipower is seeking government permission to build a so-called fourth terminal near its coal-fired power plant in Keelung, the sources said.

The utility wants to buy its own LNG independent of CPC, but the latter company has yet to lay out a plan for giving Taipower permission to use its existing two import terminals or develop a proposed third terminal for Taipower’s import requirements.

Taiwan’s new government, elected in January, is pushing for greater LNG use as it phases out nuclear power (see GLM Focus).

But CPC’s perceived delays in establishing terminal use for Taipower have slowed Taipower’s eventual entrance into the international gas market.

CPC’s chairman resigned earlier this year, sources close to the situation said, and the company is awaiting approval of a new chairman. The new government is pushing for a candidate who, among other things, will facilitate Taipower receiving access to an LNG import terminal, a source in the government told ICIS.

“CPC is already in the process of choosing a new chairman, but the central government has a heavy weight to put on the scale,” the source said.

CPC did not make an official spokesperson available. A Taipower public relations representative did not respond to questions. ben.lefebvre@icis.com