Regional LNG: Taiwan's CPC to build LNG terminal: Report

Taiwan's Chinese Petroleum Corp. has finally confirmed the plan to build a NT$24 billion ($1=NT$33.9) liquefied natural gas import terminal in Taichung after several months of deliberation, a senior company official was quoted by Dow Jones as saying Thursday.

The import terminal is to supply gas to Taiwan Power's upcoming 4,272-megawatt Tatan power plant in Taoyuan county, with the first delivery of gas scheduled for 2008.

The construction of the terminal is to begin in spring, he said.

After winning the NT$298.2 billion LNG supply contract for Tatan plant in early July, CPC was caught between taking over a half-completed LNG import terminal in Taoyuan county or building a new terminal in Taichung.

The half-completed LNG project is headed by a Tung Ting Gas Corp.-led consortium, which includes China Development Industrial Bank, Itochu Corp. , Osaka Gas Co., Evergreen Group, Mitsubishi Corp. and Uni-President Group.

"The negotiations with Tung Ting broke down because we were unable to agree on the terms and price...We're no longer in negotiations," the official said.

CPC is now waiting for approval from the Ministry of Economic Affairs before it begins construction.

The Taichung import terminal will supply 1.68 million tons of LNG a year to Tatan power plant.

Taiwan Power has no preference on the location of the new import terminal as long as it gets the gas supply on time, a senior company official said earlier.(*)