1. The Natural Gas Situation in Taiwan
Tien-Sung Chien
Energy Commission
Ministry of Economic Affairs
October 5, 2001

2. CONTENTS A. Natural Gas Supply and Demand in 1980-2000
B. Outlook for Natural Gas
C. Measures for Promotion of Natural Gas Utilization
D. Conclusions

3. Natural Gas Supply and Demand in 1980-2000

4. Energy Supply Structure
（ ） %
year

5. Natural Gas Supply
（ ）
103m3
Indigenous
Imported
Year

6. Natural Gas Imports （1990-2000）
Million tons
4.43
4.00
3.93
3.22
2.61
2.46
2.26
1.70
1.70
1.51
0.71
Year

7. Natural Gas Consumption
（ ）

8. City Gas Utilities Profile
Number of Utilities：25
Material: Natural gas / LNG
Clients：2.15 million
Gas Sales：1billion cubic meters in 2000
2.74 million cubic meters per day
Gas Prices：NG1 : 11.18－13.46NT$
NG2 : 13.29－15.01NT$
Gas Pipeline Length：16,000KM
High Pressure Pipeline：2,600KM
Middle Pressure Pipeline：4,600KM
Low Pressure Pipeline：8,800KM

9. Gas Prices
Unit : NT$/M3

10. Outlook for Natural Gas

11. Outlook for Natural Gas
 Over the next two decades, the demand for natural gas is expected to grow significantly.It will be increased from 4.8 million tons in 2000 to 13 million tons in 2010 and 16 million tons in 2020.
 The contribution of natural gas to total primary energy supply will increase from 7% in 2000 to 14% in 2020.
 Natural gas for power generation will remain the largest consuming sector and occupy % of total natural gas consumption.
 The share of gas-fired unit to total power generation will increase from 16% in 2000 to 25% in 2020.

12. Projected Gas - Fired Power Plants

13. Gas-Fired Power Plants in Taiwan
Ever Power
960 Mw
Tatan
4,000Mw
2002
Kuo Kung
600 Mw
Jun., 2003
Tungsiao
1,060Mw
Hsin Tao
600 Mw
Sep., 2001
Hsinta
2,200Mw
Star Energy
490 Mw
Apr., 2004
Chiahui
670 Mw
Sep., 2003
South
1,090Mw
Taipower
IPP
Sun Ba
980 Mw
Apr.,2004
Talin
1,050Mw

14. Measures for Promotion of Natural Gas Utilization

15. Measures for Promotion of Natural Gas Utilization
 Promote the construction of northern LNG receiving terminal.
 Expand gas infrastructure including terminal facilities, inland and sea -bed trunklines, storage tanks .
 Increase the use of gas through gas- fired units using in middle load replace peak load
 Encourage the construction of gas-fired units of IPP.
 Reduce supply cost of natural gas by removing import tariff and excise tax gradually.
 CPC returns its revenues from canceling special price for fertilizer industry to all customers.
 CPC Implements quantify discount system of gas prices for industry and city gas customers.
 City gas utilities have been allowed to sell gas to industrial users since 1999.

16. Natural Gas Infrastructure
Yang Ming Shan
Projected LNG Terminal
Shin Jr
Shin Hu
Shin Lung
Shin Taur
Shin Tai
The Great Taipai
Shin Chu
Shin Hai
Shin Shin
Chu Chien
C.P.C.
Tung Hsiao
Yu Miao
Shin Chung
Shin Chang
Shin Lin
City Gas Utility
Shin Yun
Chu Ming
LNG Terminal Facility
240KM
Shin Chia
Underground Gas Storage
Shin Ying
Shin Nan
Projected LNG Terminal
Trunk Pipeline
Shin Hsiung
Yung An LNG Terminal
Ring Pipeline
Shin Kao
Shin Ping
Submarine Pipeline
Nan Jen
Constructing New Pipeline
Distribution Station

17. CPC’s Yung - An LNG Receiving Terminal

18. Power Generation Cost in 2000
Unit : NT$/KWH
Source : Taiwan Power Company

19. Quantity Discount of Gas Prices
Source : Chinese Petroleum Corporatiom

20. Conclusions

21. Conclusions
 Natural gas keeps playing an important role in Taiwan’s energy supply and demand.
 Private invested northern LNG receiving terminal will increase supply diversity and hence improve the security of gas supply in Taiwan.
 New gas infrastructure should be completed to cope with existing supply bottlenecks and meet regional growing demand.
 Enhance the introduction and development of new technologies of gas supply system and gas equipment.
 Competitiveness of gas cost will affect the demand for natural gas.