APPEC-Taiwan CPC expects LNG imports to rise with nuclear phase-out
An official from state energy company CPC Corp stated that Taiwan's annual imports will increase as more gas-fired electricity plants are brought online in the face of the planned phase out of nuclear power by 2020.
Vice president Jane Liao said that Taiwan's LNG imports this year could increase to 20 million tonnes from 19 million in 2023.
Taiwan Power Company (Taipower), a state-owned utility, is the country's largest customer.
Liao explained that this is dependent on Taipower's usage. If their (generated renewable) power is higher than expected, LNG consumption will be lower.
Taiwan imports a lot of energy, mainly coal and natural gases, in order to meet its needs. However, it is now pushing for more renewable sources to reach its carbon neutral goal.
CPC is Taiwan's sole LNG importer. CPC is Taiwan's only LNG importer. It has long-term LNG supplies from Australia and Qatar.
Taiwan builds gas-fired plants to make up for the nuclear phase-out and increases renewable energy production.
Gas-fired power stations are still being built and should be finished by the end of next year, to complement nuclear. "That is the new demand," said Liao.
She added that 25% of Taiwan's LNG imports in 2017 came from spot supplies or short-term supplies and the remainder from long-term supplies.
As CPC delays signing long-term contracts, the volume of short-term or spot supply may increase. This is because there are uncertainties about Taiwan's nuclear phase-out timeline as well as when gas-fired plants will be finished.
Liao stated that Taiwan must have room to act in the event of a delay in the completion of plants. She said that once the plants are completed, "things would be more solid, and we'd consider buying on a longer-term basis".
CPC imports two to three cargoes each year of carbon-neutral LNG, due to requests from customers such as semiconductor manufacturers.
State energy company is building its third LNG terminal near Taoyuan. Liao stated that the hub would be tested at the end the first quarter of next year. (Reporting and writing by Emily Chow, Singapore; Nidhi verma, editing by Jan Harvey).
(source: Reuters)
