Taiwanese CPC Corporation Awards EPC Contract for LNG Tanks to CTCI and IHI Plant Services Corporation

The Taiwanese state-owned petroleum, natural gas, and gasoline company CPC Corporation has recently announced the awarding of an engineering, procurement, and construction (EPC) contract to Taiwan’s CTCI Corporation and Japan’s IHI Plant Services Corporation for the construction of liquefied natural gas (LNG) cryogenic tanks at its Kaohsiung LNG terminal.

The project involves the construction of four above-ground, double-domed tanks with a storage capacity of 180,000 cubic meters each. Valued at NT$26.6 billion (approximately $810 million), the project is expected to be completed by late 2030.

CTCI Chairman Michael Yang’s Statement

Michael Yang, Chairman of CTCI, expressed confidence in the partnership with IHI Corporation, stating, “CTCI’s partnership with IHI Corporation has spanned over two decades. With extensive track record and project management experience, we’re confident that this project will become another success.”

Yang emphasized the project’s focus on sustainability, stating, “The tank storage project will serve as another example of CTCI’s commitment to safeguarding the Earth’s sustainability, as we choose to adopt environmentally-friendly ‘Green Engineering’ technologies and intelligent technologies to expedite greenhouse gas emissions reduction and energy saving.”

Boosting LNG Storage Capacity

The LNG tanks at the Kaohsiung terminal are a crucial part of CPC’s investment in establishing a storage and transport terminal for petrochemical and refinery products in Taiwan’s southern region. The increased LNG storage capacity is expected to stabilize gas supply in the south and facilitate redistribution across the island via land and sea.

With the demand for natural gas projected to rise significantly, Taiwan aims to diversify its energy sources and work towards achieving net zero emissions. To support this goal, the Ministry of Environment approved the construction of an LNG import terminal in Kaohsiung in December 2024, scheduled for completion by 2031 to supply 6 million tonnes per annum (mtpa) of LNG.

Decarbonization Efforts and Future Plans

In line with its decarbonization efforts, CPC signed a 10-year sale and purchase agreement (SPA) with Woodside Energy in July 2024 for the supply of approximately 6 million tonnes of LNG annually, with an option for an additional 8.4 million tonnes.

The LNG tank construction project at the Kaohsiung terminal represents a significant step towards enhancing Taiwan’s energy infrastructure, ensuring a stable gas supply, and supporting the country’s transition towards cleaner energy sources.