Oil and Gas News

Taiwan in desperate need of natural gas from abroad

Jul 5, 2006, 1:55 GMT

Taipei - Taiwan's state-run Chinese Petroleum Corp (CPC) is in desperate need of liquified natural gas from abroad, but has met difficulty in finding sellers, media reports said Wednesday.

The United Daily News (UDN) quoted CPC Chairman Pan Wen-yen as saying that CPC is seeking to buy liquified natural gas (LNG) on the international spot market to meet the needs of the Ta Tan Power Plant. The power plant, launched last year, needs about one million tons of liquified natural gas each year.

In addition, the CPC's four long-term (20-year) contracts with foreign countries might not be renewed, also leading for the new search for other providers.

'Southeast Asian nations want to meet domestic needs first. Middle East countries put the focus of their export on Europe. So Taiwan can only look to Russia's Kurile Island and Australia for LNG,' UDN quoted Pan as saying.

According to UDN, Taiwan imports 7.1 million tons of LNG each year, making it the world's sixth-largest consumer.

But high demand in Japan, South Korea, the US and China for LNG has left Taiwan with little chance of landing large purchase deals with foreign countries, UDN said.

Taiwan imports most of its energy. For decades, CPC has been buying coal, oil and LNG from foreign countries under long-term contracts.

Last September, CPC signed a contract with RasGas-II of Qatar to import three million tons of LNG annually, starting in 2008.