Regional LNG: Taiwanese firms in talk on LNG terminal project
Thursday, August 14 2003 - 07:54 AM WIB
"Both sides will present cooperation proposals of the Taoyuan LNG receiving terminal project. But it would take another month or so before we can reach a decision on whether or not to go ahead with the cooperation," the source was quoted by Platts as saying.
CPC early July won a 25-year contract to supply 1.68-million metric tons per year of LNG to national utility Taiwan Power Corp. The Taipower deal requires the winner to start supplying natural gas to its new 4,272 MW Tatan power plant from a LNG receiving terminal in northern Taiwan starting 2011. As CPC does not have any LNG receiving terminal in the region, the national oil company plans to develop one in the Taichung port area on the western coast, with the project's preliminary price tag pegged at NT$20-bil ($581-mil).
CPC has until Sep 30 to inform the Taichung Port Authority on whether it will build a new LNG receiving terminal in the TPA zone. According to the CPC source, Tung Ting Gas has taken on the Taoyuan LNG terminal project together with the development of the Kuantang industrial zone where the terminal is built. "We're only interested in the terminal, and not the entire zone. Tung Ting's position is the two parts are tied together," the CPC source said.
Tung Ting had been tipped as the front-runner for the Taipower LNG term supply contract as it had a head-start with the Taoyuan LNG terminal project, but in the end lost to CPC. "Tung Ting is obviously eager to dispose off the project, preferably to us (CPC), and it has backing of powerful lobbyists in the business and government circles," the CPC source said. "Our condition however is simple. We will be interested as long as Tung Ting's offer is more attractive than developing a new terminal in the Taichung port." (*)