LNG

Taiwan voted in a referendum to retain the site of the nation’s third liquefied natural gas terminal, currently under construction at Taoyuan, though will extend the LNG carrier jetty slightly further out to sea away from a sensitive reef area.

Taiwan will vote in a referendum on December 18 on whether to move the nation’s third liquefied natural gas terminal, currently under construction at Taoyuan, to another location or to accept a government plan to extend the LNG carrier jetty slightly further out to sea away from a sensitive reef area.

Taiwan’s Minister of Economic Affairs Wang Mei-hua said a balanced approach was required for energy and LNG imports to advance the economy.

Wang urged voters to reject the relocation, and said that the present plans for the terminal, one-third of which has already been built, would not affect an algae reef near the coast.

Wang made her defence of the project in a televised forum on November 13 when the cases for and against were put forward.

Taiwan is still Asia’s fifth-largest LNG importer after North Asia’s top three of Japan, China and South Korea and with India in fourth place.

The Taiwanese are constructing the third LNG terminal to meet increasing demand after imports rose 6 percent last year to 17.75 million tonnes.

Taiwan in July 2021 signed a new LNG supply agreement with QatarEnergy for 1.25 million tonnes per annum of cargoes as the Taiwanese prepare to use more of the fuel. It is additionally increasing LNG shipments from  the US.

Under the Taiwan expansion plans, the national energy company, CPC Corp., is developing the Taoyuan terminal in the district of Datan Borough for local needs and a gas-fired power plant there.

Completion

The first phase of the Taoyuan terminal construction should be completed by 2023. A second expansion phase is also proposed.

The first expansion of Taiwan’s existing Tai-Chung LNG terminal was also completed at the end of 2019.

Further work is planned, including the addition of another berth and associated tanks, to be carried out in two phases.

The 1.8 MTPA expansion project at Taiwan’s second existing terminal, the Yung-An facility, including three new storage tanks and related regasification facilities, is expected to be completed by the end of 2026.

Minister Wang said that the LNG project was an important part of the country's power supply infrastructure, which can achieve the goals of protecting the algae reef in the area, ensuring stable power supply and cutting air pollution.

“The government’s revised project is to push the LNG terminal 450 metres away to 1.2 kilometres from the coast may not be perfect, but it is the best solution for protecting the environment,” stated Wang.

The LNG plant referendum was achieved by environmentalist groups brought together into the “Rescue Datan Algae Reefs Alliance”. They managed to collect more than 700,000 signatures by March 2021 to have the LNG terminal issue put on the ballot on December 18.

Taiwanese voters will be deciding on three issues in the referendum, the LNG terminal, the re-activation of a moth-balled fourth nuclear power plant and the quality standards of imported pork.

CNP Corp., the Taiwanese energy company, said it received its first cargo on November 26 from the Ichthys LNG export plant in the Northern Territory of Australia, as the Asian country claimed as part of China broadens its supply sources.

Taiwanese energy company CPC Corp. has signed a preliminary accord with US LNG producer Cheniere Energy for the supply of 2 million tonnes per annum for 25 years.

April 30 (LNGJ) - Gulf Agency Company (GAC), the shipping and marine services company, has secured a contract with the Donggi Senoro LNG export plant in Indonesia to handle its vessels needing agency services at the two import terminals of Tai-Chung and Yung-An in Taiwan. Managing Director Kenny So said the contract win comes after the steady growth of agency business for all types of vessels, including LNG carriers, since the opening of GAC’s Taiwan shipping office in Kaohsiung in 2017. “Winning the DSLNG contract reinforces our optimism about the future of the LNG agency business in Taiwan, which is the world’s fifth-largest LNG buyer. We expect the number of LNG calls to rise, as Taiwan increases its LNG imports to drive power sector growth,” added So.

The Taiwan Power Company has issued an expression of interest request for its first international long-term LNG supply contract for up to 2.4 million tonnes per annum over 15 years and delivered to its new Tai-Chung import facility under development.