1. LNG Demand Situation and Trade Issues
APEC Regional LNG Trade Facilitation
LNG Demand Situation
and Trade Issues
Chinese Taipei
Jane. H.J. Liao
Deputy CEO of Natural Gas Business
July

2. The Market- now and then LNG Issues How Can APEC Help Find the Needs
Content
The Market- now and then
LNG Issues
How Can APEC Help
Find the Needs
LNG in Chinese Taipei 2 2

3. LNG Demand and Issues Chinese Taipei
APEC Regional LNG Trade Facilitation
LNG Demand and Issues
Chinese Taipei
Jane Liao
Deputy CEO of Natural Gas Business
July

4. The Market Now and Then Then LNG Target Market : USA (Import)
Specification: Leaner
LNG Vessel : Q max/Q Flex
Train Capacity: Mega project
Focused market : US, Canada/ Shale Gas (Exports)
Pricing : HH/ de-oil linked
Term: Shorter (10-15 yrs)
Destination: More Flexible

5. LNG Market Transformation
Page11: The phenomenon result from shale gas
Asian financial crisis
Historical high oil price
Oversupply (Take-or-pay)
Global financial crisis
Oil price dropped
Canada LNG export
US import project
Planned US LNG export ？ ？
1995
2000
2005
2010
2015
2020
2025
Indonesia shortfall
Yemen delayed
Sakhalin delayed
US LNG start to export
Driving forces of cargo diversion
Buyer’s Market
Seller’s Market
Paradigm Shift

6. The LNG Issues
Business Model
The Relationship
The Dilemma

7. How Can APEC Help Top sellers and buyers within the APEC
Contradiction ?
The Balance ?
Industry
Government

8. Rationale Pricing Mechanism
Find the Needs
Reliable Supply
Rationale Pricing Mechanism
Flexible Terms
Cliché?
Find out what you need
Let the market decide the road ahead !!!!!

9. Energy Consumption Mix Structure of Energy Consumption
Electricity accounted for 49% of total energy consumption in 2014.
Major fuels for power generation : Coal (33.6%), Gas (27.9%) and Nuclear (16.3%).
Structure of Energy Consumption
Electricity Mix
Source: Bureau of Energy, MOEA

10. LNG in Chinese Taipei (2014)
Supply
LNG Imported
13.3 MTPA
Demand
Gas sold
17.6 billion m3
Imported LNG
98%
Indigenous Gas 2%
Power Sector
80%
Industrial 7%
Residential
13%
T&T
Algeria
Spain
E.G
Russia
Nigeria
Oman
Australia
Yemen
Brunei

11. Receiving Facilities 2 LNG receiving terminals in
13.3MT was imported in 2014
The 3rd receiving terminal to be built by 2024
The total receiving capacity to 20MTPA
Off-shore Pipeline
On-shore Pipeline