Taipower's Natural Gas Procurement

2/17/24

Overview of Taipower's Gas-fired Plants

The location and installed capacity of Taipower's existing gas-fired power plants are shown as follows:

Supply of Natural Gas

As LNG unloading, transmission, and storage facilities in Taiwan are exclusively owned by CPC Taiwan,CPC Taiwan is the only natural gas (for power generation sector) supplier in Taiwan.

Contract Type and Pricing

United Contract

The natural gas supplied to Hsinta, Talin, Nanpu, TungHsiao, and Tatan (except for the quantity supplied under the Tatan Exclusive Contract) is under the United Contract.

Pricing under United Contract is based on the CPC Taiwan’s published price monthly.

Tatan Exclusive Contract

Pricing under Tatan Exclusive Contract is based on the contract formula and calculated monthly.

Taipower's LNG Independent Procurement Plan

Taipower has been approved to purchase liquefied natural gas (LNG) by itself on August 29, 2014, and some of new gas-fired projects will use LNG procured by Taipower itself. To handle LNG independent procurement, Taipower added the item of “natural gas import industry” to its business scope in June 2017.

Taipower has planned Taichung Project, Hsieh-Ho Project (including both newbuild gas-fired units and LNG terminals) and the Tunghsiao Phase II Project. The feasibility studies of these 3 projects were approved by the Executive Yuan on March 14, July 4, 2018 and August 16, 2019 respectively, among which Taichung and Hsieh-Ho Project have selected multi-source (portfolio) LNG suppliers, all of whom have rich experience in LNG supply, to ensure the future gas supply security of Taichung and Hsieh-Ho Project. In addition, the Tunghsiao Phase II Project is planned to be supplied by Taipower-built Taichung LNG terminal through the subsea pipe. However, there are still some uncertainties for this project, so the relevant operations will be carried out after the situations of the project become clear.