Downstream Operations - CPC Corporation, Taiwan

DOWNSTREAM OPERATIONS. Being responsible for stable domestic oil and gas supply. Importing & Refining. As Taiwan's domestic production of crude oil yields ... 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ResearchandDevelopmentpolicies SocialCare IndustrialSafety&Health 2014SustainabilityReport 2015SustainabilityReport 2016SustainabilityReport 2017SustainabilityReport 2018SustainabilityReport CPCVLCCT/CTenderInvitation RegistrationProcedureforBuyersofCPC′sPetroleumProductforExport RegistrationProcedure/Pre-qualificationForSellersofCPC′sPetroleumProductImport RegistrationProcedure/Pre-qualificationForSmallCargoBuyersofCPC′sPetroleumProductExport RegistrationProcedureforSpotCrudeOilSuppliers CrudeOilProcurementProcedure PetroleumProductsExportTenders PetroleumProductsImportTenders CPCCorporation,Taiwan CPC'sOverseasOffices OfficialMailbox Chairman Organization ManagementTeam IndustrialSafety&Health CPCAffilatesandSubsidiaries ProjectsandPlans PrivacystatementfortheCPCwebsite CPC’sInformationSecurityPolicy GovernmentWebsiteOpenInformationAnnouncement AnnualReports CPC'sVision,Mission&CoreValues CPCataGlance CPCWorldwide MajorBanner SiteMap RelatedLinks CSR&Sustainability CareerswithCPC TradingwithCPC Technology&Innovation News&Events Contactus AnnualReports AboutCPC GlobalOperations SiteInfo AboutCPCLink CPC'sVision,Mission&CoreValues Oilprice Gasstation Naturalgas AdvancedSearch Share Facebook Plurk Twitter line Email GlobalOperations UpstreamOperations DownstreamOperations AccountingManualforOverseasInvestment Technology&Innovation Research& Development ProductsandPricing PollutionPrevention&EnvironmentProtection HistoricalGasolineandDiesselPrices CSR&Sustainability SustainableDevelopment EnergyConservation&CarbonReduction R&DPoliciesandCircularEconomy ResponsetoClimateChange&EcologicalConservation WorkplaceandEmployeeDevelopment SocialCare AnnualSustainabilityReport FeaturedStories CareerswithCPC TradingwithCPC RegistrationProcedureforBuyersofCPC′sPetroleumProductforExport RegistrationProcedure/Pre-qualificationForSellersofCPC′sPetroleumProductImport RegistrationProcedure/Pre-qualificationForSmallCargoBuyersofCPC′sPetroleumProductExport RegistrationProcedureforSpotCrudeOilSuppliers CrudeOilProcurementProcedure PetroleumProductsExportTenders PetroleumProductsImportTenders News&Events::: GlobalOperations UpstreamOperations DownstreamOperations AccountingManualforOverseasInvestment ::: Home GlobalOperations DownstreamOperations DownstreamOperations_ Webpagefunction PrintContent DownstreamOperations DOWNSTREAMOPERATIONS Beingresponsibleforstabledomesticoilandgassupply Importing&Refining AsTaiwan’sdomesticproductionofcrudeoilyieldsonlyextremelylowvolumes,CPCneedstoimportvirtuallyallofthecrudeitrefinestosupplyitsdomesticmarket.Toensurestability,CPCworkstobothmaximizeprocurementonlong-termcontractsandtodiversifyitssourcesofcrude. Importsin2020amountedto128.4millionbarrels;ofthattotal,50.39%camefromtheMiddleEast,41.33%fromtheUSA,8.28%fromAfrica.Inrecentyears,importsoflow-sulfurcrudehavebeenmaintainedatasetratioofthetotaltoenablecompliancewithTaiwan’severmorestringentenvironmentalprotectionstandards. Toimportcrudeoil,CPChasinstalledoffshoremooringpontoonsforunloadinglargeoiltankers:atShaluninTaoyuanandatDalinpuinKaohsiung.Thecompanyhasalsobuiltdedicatedtankerloading/unloadingberthsintheportsofKaohsiung,TaichungandShenAo. Qualityandoutputvalueincrease CPCnowoperatestworefineriesinTaiwan—atTaoyuanandDalin—withacombineddailyrefiningcapacityof600,000barrelsofcrude.Undergovernmentpolicyforindustryrelocation,KaohsiungRefinery,anintegratedrefiningandpetrochemicalproductionandstoragecomplexwithadailyrefiningcapacityof220,000barrelsofcrudeaswellas500,000tonsofethyleneannually,ceasedoperationsinlate2015.Uponclosure,itsrefiningactivitywastransferredtotheexpandedDalinrefineryanditsethyleneproductiontothethennewThirdNaphthaCrackerintheLinyuanPetrochemicalComplex. TheDalinRefinerybecameoperationallyindependentfromtheKaohsiungRefineryin1996.Afterexpansion,thereare4offshoremooringbuoysaswellaslargeandsmallwharvesforhandlingbothimportsandexports,holdingthedailycapacityofupto400,000barrelsofcrudenow.TheTaoyuanRefinerycameonstreamin1976;afterengineeringmodificationsandtheadditionofthesecondtoppingunit,itsdailyrefiningcapacitynowamountsto200,000barrelsofcrude.In2020,thetotalofrefinedproductswas8,256kilolitersofgasoline,1,715kilolitersofaviationfuel,5,558kilolitersofdiesel,2,245kilolitersoffueloil,and367kilolitersofLPG. Taiwan’sincreasinglystringentstandardsofenvironmentalprotectionarelargelyinresponsetothedemandsofitspeopleoutofconcernfortheirqualityoflife.Atthesametime,theyexhibitincreasingdemandforadiverserangeofoil-derivedproductsandCPChasmovedtoenhancethequalityofthosegoodsandincreasetheirvalue.Goingfurther,thecompanyhas,inrecentyears,raisedtheproductionvalueofitsproductsbybuildingadditionalandmoretechnologically-advancedrefiningfacilitiessuchasreformingunits,isomerizationunits,andgasoline/dieseldesulfurizationplant,anaviationfuelprocessingfacility,togetherwithn-alkane,alkylationandresidualfluidcatalyticcracking(RFCC)units.CPCalsoplanstobuildVDU,SDAunitsandaromatichydrocarbonextractionunitsinordertoofferdomesticconsumersevenbetterproductsandimproveitsproductionefficiency. HighvaluerefiningReducedemissions InresponsetotheEPA’scallforcertainreductionsintheareaoffuelqualityin2011:ofthesulfurcontentofgasolineanddieselfueltounder10ppmw,ofthearomatichydrocarboncontentofgasolineanddieselfuelto35vol%andofthealkenecontentofgasolineto18vol%,CPCconstructeda30,000barrelsperdaygasolinepyrolysisandhydro-desulfurizationunitattheTaoyuanRefineryby2008,a20,000barrelsperdaygasolinepyrolysisandhydro-desulfurizationunitattheDalinRefineryby2009anda40,000barrelsperdaydieselhydro-desulfurizationunitattheDalinRefineryby2010.Furthermore,an18,000barrelsperdaygasolinepyrolysisandqualityimprovementunitwasmovedin2011fromtheKaohsiungRefinerytotheDalinplant. In2006,CPCbeganincreasingitsheavyoilconversionratebyconstructionofRFCCunitwithcapacityofan80,000barrelsperdayattheDalinRefineryandcompleteditstestingandkickedoffitsvolumeproductionin2013.OlefinproducedbytheRFCCunitintheDalinRefineryaftercompletionoftheconstructioncanbenotonlybeprovidedtodownstreambusinessesoftheindustrydirectly,butalsousedastherawmaterialofalkylatedgasoline.CPCcompletedtestingoftheunitandkickedoffitsvolumeproductioninthemid2013;itsoperationhasincreasedthevalueofourproductandimprovedgasolinequality.Inaddition,tocopewiththeproblemofacidgasgeneratedintheproductionprocessandreducetheemissionofthepollutant,CPCinvestedintheconstructionofasulfurplantwithadailyoutputof250tons,whichstartedtoproducequalifiedsulfurproductsattheendofJune2014. Inaddition,CPCcarriedoutanexpansionoftheNo.3Hydro-desulfurizationUnitattheDalinRefinerytoincreaseitshigh-sulfurcruderefiningcapacitywhichincreasedfrom30,000to40,000barrelsperday,lowerthecostofcrudeoilprocurementcostandstabilizethequalityoftheRFCC-unit’sfeedstock.TheexpandedunitbeganproductioninMarch2017. TocopewiththeconsequencesoftheKaohsiungRefineryclosure,theDalinplant’scapacitywasexpandedwiththefollowing:a150,000barrelsperdayatmosphericcrudeoildistillationunit(CDU),a50,000barrelsperdaylightcrudefractionatingunit(CFU),a40,000barrelsperdaydieselhydro-desulfurization(DHDS)unitanda30,000barrelsperdaykerosenehydro-desulfurization(HDS)unit.Theseunitscompletedperformancetestingandbeganmassproductionin2018,insodoingeliminatingworriesaboutshortageoftherawmaterials(duetotheclosureoftheKaohsiungRefinery)neededforthefuturesurvivalanddevelopmentofTaiwan’spetrochemicalindustry.Withthecompletionofthatexpansionproject,the100,000barrelsperdayNo.9ToppingUnitattheDalinRefinery,whichhadbeenoperatingforsome40years,wasshutdown.ThecapacityoftheDalinRefinerywasboostedfrom300,000barrelsperdayto400,000barrelsperdayatpresent,raisingCPC’soveralldailycrudeoilrefiningcapacityto600,000barrelsperday. ToimprovetherefiningconfigurationofDalinRefinery,meetthestandardsofmarinefueloilforIMO2020,andincreasinglystrictrequirementsimposedbydomesticenvironmentregulationsforemissionsofairpollutantsandstrengthenourcompetitivenessinasphaltmarket,CPCplanstoconstructa30,000barrelsperdayvacuumdistillationunit(VDU)anda8,000barrelsperdaysolventdeasphalting(SDA)unitatDalinRefineryalongwithPolymer-ModifiedAsphaltandasphaltcutbackproductionfacilities,asphaltstoragefacilities,anasphaltblendingsystem,revampingofNo.9dieselhydrodesulfurizationunit,andassociatedequipment.CPCaimstoincreaseitscompetitivenessinoverseaanddomesticmarketbytheseefforts. Astheawarenessofenvironmentprotectionpublicandconcernofairpollutioninoursociety,theEnvironmentProtectionAdministration(“theEPA”)hasenforcedstricterstandardforautomobilegasoline;sinceJuly1,2020,benzenelevelsinpetroleumhavetobegraduallyreducedfrom1.0vol.%to0.9vol.%.TheEPAplanstoreducebenzenetolessthan0.8vol.%infuture.Inresponsetoenergytransitionandtheregulatorylimitforbenzenecontentofgasoline,CPCfirstinvestedintheprojectofcreatinga0.3wt.%ultra-lowsulfurfueloilandasphaltcutbackproductioncenter.In2020,itcameupwiththeinvestmentplanforproductionofgasolinewithreducedbenzenecontentandhighqualityproducts.Thecompanywillbuildaunitforextractionofaromaticscontentfrompyrolysisgasolinewithcapacityof32,000barrelsperday(includingaromatizationunit)anditsaccessoryequipment,includingstoragetanksandpublicsystems,inordertomakeitsgasolineproductscomplywithregulatoryrequirementsandincreaseCPC’scompetitivenessindomesticandoverseasmarkets.   CPCinPetrochemicals CPC’smajorpetrochemicalproductionfacilitiesareitsLinyuanPetrochemicalPlantrunbythePetrochemicalBusinessDivisionaswellastheTaoyuanandDalinrefineriesoperatingunderitsRefiningBusinessDivision.TheRFCCunitsintworefineriesinDalinandTaoyuancanproducepropyleneproducts,andthenaphthacrackersandbutadieneextractionunitsofLinyuanPetrochemicalPlantcanproduceethylene,propyleneandbutadieneproducts.Aromaticsextractionunitscanproducebenzene,tolueneandmixedxylene.Currently,CPC’sannualproductioncapacitiesforbasicpetrochemicalrawmaterialsare1.07millionmetrictonsofethylene,1.194milliontonsofpropylene,158thousandmetrictons(KTA)ofbutadiene,274KTAofbenzene,321KTAoftolueneand507KTAofmixedxylene. AsapioneeroftheupstreampetrochemicalbusinessinTaiwan,CPChascontinuedtoinvestinavarietyofupstreampetrochemicalbusinessestodrivedevelopmentofdomesticpetrochemicalindustry,whichhasinturncontributedtoeconomicmiracleofTaiwan.Inrecentyears,ithasbeendedicatedtoequipmentupgradeandcapacityexpansioninordertoreducetheshortageofpetrochemicalrawmaterialssupply.Startingin2005,CPCimplementedtheprojectof“NewNo.3NaphthaCracker”inLinyuanPetrochemicalComplex,withtotalinvestmentofoverNT$40billion.ThisnewNo.3NaphthaCrackerstartedtoproduceethylenethatmeetsspecificstandardsin2013withethylenecapacityof720KTA,propylenecapacityof370KTAandbutadienecapacityof100KTA.ItisasupplierofpetrochemicalrawmaterialstobothdownstreambusinessesinLinyuanIndustrialPark,andbusinessesinRendaIndustrialPark,whosesupplywasoriginallyprovidedbytheNo.5NaphthaCracker,creatingeconomicbenefitsthatworthNTD60billionperyear.Inthefuture,CPCwillcontinuetotaketheadvantageofitsnewproductionprocesses,lowenergyconsumptionandeconomiesofscaleforourcrackerstoensuresufficientsupplyofbasicpetrochemicalrawmaterialstodownstreamcustomers. Refinery-petrochemicalsintegrationIndustrialtransformation Inresponsetothegrowthofglobalelectricvehiclesmarketandsupportgovernment’senergytransitionpolicy,CPChasconductedintegrationofitsrefiningandpetrochemicalbusinesses,andhasreduceditsproductionofgasolineanddieselandhasproducedmorechemicals.Inaddition,CPChasreducedtheseverityofpollutionfromtheplantsandhasdecreasedenergyconsumptionofitsoperationsandhasstrengthensafetyatitsfacilitiesthroughsupplyofrawmaterialsamongdifferentbusinessunitsandtheplantocreatesynergyofitsresourcesandpublicfacilitiesthroughhigh-degreeintegration. CPCorganizesandsupportsthecirculareconomytocreateawin-winsituation Inthefaceofthechallengesposedbyclimatechangeanddepletionofnaturalresources,CPCactivelyfollowsthegovernment’s“CircularEconomy”Policybyturningpetrochemicalby-productsusedasfuelorpreviouslyregardedasindustrialwasteintovalue-addedproducts.CPCaimstocreateawin-winsituationbetweeneconomicdevelopmentandenvironmentalprotectionbyadheringtotheprinciplesofsustainableoperations–alsoanimportantelementinitseffortstosurmountthechallengeofindustrialtransformation. MarketingCPCPetroleumProducts CPC’ssaleofrefinedpetroleumproductsinitsdomesticmarketisprimarilyfocusedonthetransportationsector–specificallythegasoline,diesel,fueloilandaviationfuel.In2020,itssalesofthoseproductsinTaiwantotaled16,982kilolitersinvolumeandgeneratedrevenueofapproximatelyNT$282.2billion.Automotivegasolineaccountedforthelargestshareatapproximately58.1%,followedbydieselatabout26.0%,fueloilatabout10.1%andaviationfuelataround5.8%. Taiwan’sinternalmarketofrefinedpetroleumproductshastwomajorplayers,CPCandtheFormosaPlasticsGroup.CPChasworkedhardatleveragingtheadvantageofitsmarketingnetworktomaintainitsmarketsharebymaintainingthebusinessperformanceofitsgasstationnetwork:Asoftheendof2020,ofthe2,494gasstationsinTaiwan,616weredirectlyrunbyCPC,1wasjointlyrunbyCPCandanotherparty,and1,281wereprivately-ownedbyCPCfranchisees,addinguptoatotalof1,898.Theirsalesasapartofthetotalmarketvolumebreakdownasgasoline79.5%,diesel77.4%,fueloil94.9%andaviationfuel63.6%,withtheoverallmarketsharebeing78.9%. Improvingstorageandtransportationtomeettheneeds Intermsofthestorageandtransportation,CPCnotonlyrunsitsgasstations,butalsooperatesaviationfuelingstationsatallofTaiwan’sairports-Songshan,Taoyuan,Kaohsiung,Taichung,Hualien,Taitung,Kinmen,andPenghu.Aroundthecoast,ithasmarinebunkeringstationsforinternationalvesselsatKeelung,Suao,Taichung,Kaohsiung,andHualienports. Asoftheendof2020,CPCoperated14productdistributioncenters,locatedcountry-wideatKeelung,Shimen,Hsinchu,Taichung,TaichungHarbor,Wangtian,Minxiong,Tainan,Fengde,Qiaotou,Suao,Hualien,Huxi,Kinmen.Theysuppliedproductstogasstationsintheirsurroundingareaswithatotalof19,826kilolitersofproductoverthecourseoftheyear.Ithasthreechemicalanalysiscenters/petroleumlaboratoriesinKeelung,TaichungandKaohsiung,plussixtestinglaboratories,whichareinchargeoftestingproductsforqualitycontrolandaltogetherhandled28,738samplesin2020.Thetransportationdepartmenttransported12,291kilolitersofoilin2020,andthemileagewas20,856,000kilometers. Mobilepayment,optimizationofservices Intermsofgasstationoperation,CPCisunquestionablythemarketleaderbyvirtueofofferingtheconsumerssuperior-qualityservicesacrosstheboard,thatdifferentiatesitfromitscompetitors.Thecompanyfurtherleveragesitsserviceadvantagebyimplementingtotalcustomerexperiencemanagement:havingcreatedandmaintainedthecultureofhygieneoflavatories;vigorouslypromotingVIPmembershipcards;introducingnewbusinesslinesandservicesinlinewithcontemporarytrends;andreinforcingcustomerrelationshipmanagement.CPChastakentheleadinofferingcard-basedself-servicerefuelingasameansofloweringoperatingcostsandworkingaroundthedifficultyofrecruitingfillingstationattendants;atthesametimeasithaspromotedthismulti-servicebusinessmodelfeaturingadiversityofofferings,thecompanyhasboostednon-operatingincomebystrengtheningcross-industryalliances. Becauseofthepopularityofmobilepayments,CPCintroducedandpromotedcontactlesspayment(Near-fieldCommunications,NFC)inJune2018.WithaviewtooptimizingtheprogramofMobilepayment,strengtheningtheloyaltyofVIPmembership,integratingthepaymenttoolsandsoon,CPC’sownpaymenttool,CPCPay,wasreleasedonNovember12,2019,anditcanbeconsideredasthepioneerofexclusivelydesignedformakingpaymentsatgasstations.“CPCPay”combinesdiversefunctionssuchaspayment,VIPmembershipservices,specialoffers,servicesrelatedtovehicleuse,suchasqueryofparkinglot,gasstation,fuelpriceandeTagtollfee.Userscangraspavarietyofinformationefficientlyby“CPCPay”,andthevalueofCPCandsatisfactionandloyaltyofconsumersareimproved. Inordertoprovidecustomersavarietyofwaytopay,customersofCPCgasstationsareabletouseLinePay,LinePayMoney,PiMobileWallet,JKOPay,O’Pay,GAMAPAYandthethird-partypaymentservicefore-paymenttransactionsatthefull-serviceareassinceJuly15,2020.CPCprovidesmoreconvenientpetrol-fillingservicetoitscustomerswithwirelessbarcodereader,whichallowscustomerstoaccomplishthepaymentwithoutleavingtheircars. InordertoimproveuserexperienceofCPCPay,customershavebeenabletoaddVISA/MasterCard/JCBcreditcardstotheirCPCPaysinceDecember29,2020.CPChaskeptoptimizingthefunctionsofCPCPayandlaunchedthepromotioncampaignsthatfeaturesitsuseinordertoincreasecustomers’willingnessandinturnforgebrandidentitytoitscustomers. DriveThruCoffeefragrancefillstheairofthecommunity Themulti-servicebusinessmodelforgasstationscomprisestheprovisionofcar-washing,quickmaintenance,CUP&GOcoffee,on-siteconveniencestoresandthesaleofsuperior-qualityautomotiveandconsumerproducts.Inaproactiveresponsetothegovernment’spolicyforestablishingenvironmentalprotectionenergyapplications,CPChasestablished558battery-chargingandbattery-switchingstationsforelectricmotorcyclesinthepastthreeyears.Itplanstoestablishmoresuchstationsandincreasethenumberofthegasstationsthatsellcoffeein2021.Currently,coffeeisservedatatotalof29gasstations.SalesofarangeofCPCproductsthroughthegasstationsin2020included2.1millionbottlesofKuo-Kuangbrandintake-systemcleanerformotorcycles,automobilesanddieselvehicles;0.77millionbottlesand0.17millionbottlesofSeeCleanEco-FriendlyLaundryandDishwashingDetergents,arecord-high0.134millionmooncakegiftboxesandover0.16millioncupsofcoffee.Revenuesfromcarwashingandquick-maintenanceservicesalsosetnewhighs.OverallgrossprofitfromthesediverseoperationsexceededNT$1.28billionfortheyear,abundantlymanifestingboththevalueofCPC-brandedgasstationsasasalesandmarketingchannelandthefactthattheirrangeofservicesmeetswithcustomerapproval. Inregardtocustomerservice,CPCsetupthe0800-036-188customerhotlinein2000forcoordinatedhandlingandresponseofcustomerissuesafterintegrationofavarietyofprofessionalservicesprovidedbydifferentinternalunits.The1912CPCservicehotlinecameintousein2011,Englishservicewasaddedin2020andTaiwaneseservicein2021,expandingthecompany’swindowforcommunicationwiththepublic. Excellentresultsinpromotionofgreenarchitecture Withintheglobaltrendtowardsenvironmentalprotection,thereisnowanemphasisonconstructingbuildingsinawaythatservesthecauseofsustainability.variouslytermed“ecologicalbuildings”inJapan,“ecobuildings”or“sustainablebuildings”inEuropeand“greenbuildings”intheUSAandTaiwan.Nomatterhowyounamesuchbuildings,theyallaimtoprotectecologicalsystems,encourageamutuallybeneficialrelationshipbetweenthestructuresandtheenvironment,conserveenergyandreducebothpollutionandtheoverallenvironmentalimpact.ThesesustainabledesignandgreenconceptsalignwithCPC’sdedicationtoachievingsustainabilityinitsoperations.CPClaunchedaprogramtogreenitsgasstationsin2013.AsofDecember2020,65gasstationshadreceived“greenbuilding”certification. NaturalGas CPC’spromotesnaturalgasasthefuelofthefutureinkeepingwithTaiwan’spolicyaimofenergydiversification.Itisbasedonitsinherentadvantagesintermsofhighthermalefficiency,lowpollutionprofileandconvenienceforsafehandling.AneweraofcleanenergyforTaiwanwasusheredinwiththecompletionofthecountry’sfirstLNGreceivingterminalinKaohsiung’sYonganDistrictin1990.Tocopewithgrowingdemand,itscapacitywaslaterboostedto4.5milliontonsannually;andasecond-phaseexpansionprojectwascompletedinDecember1996.Athird-phaseexpansionprojecttosatisfydemandfromindependentpowerproducers(IPP)aswellasconsumerandindustrialend-usersinnorthernTaiwancommencedinJuly1996.Inadditiontoterminal-areaexpansion,thisinvolvedlayinga36-inchdiameter,238kmlongunderseapipelinefromtheYonganplanttoTongxiao.ItscompletioninDecember2002expandedCPC’sannualLNGhandlingcapacityto7.44milliontons. BuildingoutTaiwan’snaturalgasproduction,transmissionandstorageinfrastructure Taiwan’saforementionedsecondLNGreceivingterminalissitedclosetoTaichung’sPortWestPier13andthehinterland.WiththeprimarypurposeofsupplyingnaturalgastoTaiwanPowerCompany’s(Taipower)industrialfirmsandhouseholdusersincentralandnorthernTaiwan,CPCbuiltanannualLNGhandlingcapacityof3.0milliontons,threeLNGstoragetankseachof160thousand-kilolitercapacity;gasificationandgassupplyfacilities;anda135-kilometer,36-inchsealong-distancegastransportationpipelinefromTaichungHarborthroughtheTongxiaodistributioncentertotheDatanmeteringplant.ThisplanwaslaunchedonJuly13,2009.Therecently-completedTaichungLNGTerminalPhaseIIInvestmentProjectcallsfortheconstructionofthreeadditional160thousand-kiloliterabove-groundstoragetanksplusanothergasificationfacilityattheterminalitself;a26-inch,21.8kmterrestrialgaspipelinebetweentheterminalandtheWuxiSeparationStation;andafurtherswitchingstationlinkedtotheexisting26-inchpipelineattheWuxisite.TheprojectwillboosttheannualLNGhandlingcapacityoftheTaichungterminaltoover5.0milliontonsandensureastable,dependablesupplyofnaturalgasduringthewinter’softeninclementmonsoonperiodaswellas-andpartlybecauseof-greaterstoragecapacityintermsofthenumberofdays’supplyofLNGonhand. FurtherexpansionoftheTaichungLNGTerminal’scapacityisunderway.Currently,Taiwangovernmentpoliciesforphasingoutnuclearpowerplantsandforreducinggreenhousegasemissionsmandatea50%sharefornaturalgasinfuelingTaiwan’stotalelectricitygenerationby2025.Tohelpreachthistarget,CPCwillleaseWharves11and12andtheirassociatedfacilitiesfromthePortofTaichungtocreatetheTaichungLNGTerminal’sseconddedicatedLNG-unloadingwharf;andexecutionofitsPhaseIIIexpansionmodulewilladdtwo180thousand-kiloliterabove-groundstoragetanksandtheirassociatedgasificationplant.Theseprojectsarescheduledforcompletionin2022and2026respectivelytoimprovetheunloadingenergyandgassupplystability. Inordertocomplywiththe“CapacityofSelf-providedStorageTanksforNaturalGasProductionorImportEnterprises”revisedonAugust27,2019,therequirementsforincreasingthenumberofstoragetankcapacitydaysandbusinessinventorydaysyearbyyear,CPCwillgetonwithTaichungReceivingTerminalNewPier&TerminalExpansionexteriorTaichungHarborInvestmentProject(addfourabove-groundfull-capacityLNGstoragetanksof180thousand-kiloliter,gasificationfacilitiesandtwoLNG-unloadingwharfsandotherrelatedfacilities)afterthecompletionoflandreclamationofNorthReclamationArea(III)andSouthReclamationArea(IV)-2,andusetheNantiRd.-crossingpipelinestoconnecttotheexistingplantareatosupporteachother.Itisexpectedthatafterthecompletionoftheendof2028,theoverallequipmentutilizationratecanbereducedandthegassupplystabilityandsafetycanbeimproved. CPChasconstructedanextensivenaturalgastransmissionanddistributionsystemonTaiwan’swesternside.Itcomprisesapproximately2,1thousandkmsofterrestrialtrunkpipeline,extendingfromPingtunginthesouthtoKeelunginthenorth;andwhichincludes8supplycenters,onetransfercenterand50distributionstationsalongitslength.Currentplansarecenteredonthegoalofconstructinginterlockingring-shapednetworkstoproduceafigure-8configuration;thiswillinvolvelayingdowna238-kilometerunderseapipelinefromtheYonganLNGTerminaltoTongxiaoanda500-kilometerterrestrialpipelineonwardsfromYongantoTaoyuan.Inaddition,afterthe36-inchunderseagaspipelinefromtheTaichungLNGplanttotheDatanpowerstationhascomeonstream,itwillbelinkedwithterrestrialpipelinesincentralandnorthernTaiwantoformanothercircularformation-thuscompletingtheplannedisland-wide,integratedfigure-8naturalgastransmissionnetwork. Activeexpansionandassuringsecuregassupply Complyingthegovernmentpoliciesforphasingoutnuclearpowerplantsandcreatinganenvironmental-friendly,lowcarbonenvironment,CPCplanstosetupfourgas-firedgeneratingunitsinDatanPowerStation.TogenerateabundantenergyforDatanPowerStation,commoditysectorsinthenorthandothercustomersofthepowerstation,CPCplanstosetupthethirdLNGterminalinKuantangIndustrialCentre,comprisingreceptionfacilitieswhichcanholdupto3millionmetrictonsofimportquantum,twoLNGstoragetankseachof160thousand-kilolitercapacity;gasificationandgassupplyfacilitiestoconnectwiththeexistinggassupplysystem. CPC’sThirdLNGTerminalprojectgotunderwayin2016andiscurrentlyscheduledtocomeonstreaminOctober2022.OtherwiseCPCgetsonwithThirdLNGTerminalphaseIIexpansionproject(planningtobuildsix180thousand-kiloliterabove-groundstoragetanks,asecondLNG-unloadingwharfandgasificationfacilities)inThirdLNGTerminaloffshorereclamationareas.Theoverallprojectisexpectedtobecompletedbytheendof2030.Atthatpoint,withthethreeterminals-oneineachofnorthern,centralandsouthernTaiwan-supplyingnaturalgastousersintheirrespectiveareas,thereshouldbesomereductioninthecostandriskoftransmittinggasoverlongdistances-inthatfigure-8combinedunderseaandterrestrialgaspipelinenetworkwillenhancethesafetyandstabilityofgassupplythroughitstransferandbackupfunctions.CompletionofthisthirdLNGreceivingterminalprojectwillenableCPCtoconstructandoperatenationallevelnaturalgassupplysystemthatisfully-functional,stableandsafe. Globalarrangement,stabilizationofgassupply CPChasdevotedconsiderableefforttodiversifyingitsLNGsourcestoensureareliablystablesupplyofnaturalgasforTaiwan.ThesourceofimportsincludestheMiddleEast,theAsia-Pacificregion,Russia,Australia,NorthAmerica,CentralandSouthAmerica,AfricaandEurope.Theprocurementcomesfromallovertheworld. Inadditiontolong-termLNGprocurementcontracts,CPCacquiresyetmoresuppliesthroughmedium/short-term/spottransactionstoachievethegoalofstablesupplyanddecentralizedgassupply.In2020,CPCimportedmostofitsLNGfromQatar,PapuaNewGuineaandAustralia,withsomecomingfromRussia. OTHERPRODUCTS Liquefiedpetroleumgas-makeuseofgreatqualityandachieveexcellence CPC’slong-standingmonopolyintheLPGmarketwasbrokenwhenthegovernmentopenedituptocompetitionin1999.FormosaPetrochemicalCorp.asaproducerandimporterbegancompetingwithCPC.Inresponsetomarketcompetition,CPChasmaintaineditsleadingmarketshareinthehouseholdgasmarketbymakingfulluseofitsqualityadvantages,north-southtransport,storagesystems,comprehensivemarketing,retailnetwork,fullgraspofinternationalmarketpricefluctuationsandreductionofprocurementcosts.Insellingindustrialgas,thecompanyaimsatraisingthequalityofitscustomerserviceandpromotingthevalueofitsproductssoastobothretainexistingcustomersandwinnewones.CPCcooperateswiththegovernment’sLPGsafetyreservepolicytoincreasethestoragetanksturnoverrateandrevenue;atthesametime,itendeavorstoreinforcebothoccupationalsafetyandenvironmentalprotectionprotocolsforthemissionofstabilizingtheLPGsupplyinthedomesticmarketanddeliveringoperationalperformance. CPCLUBRICANTS:internationallyrecognized,honorablebrand CPC’sLubricantsBusinessDivision(LBD)wasfoundedin1999,March16.NowCPCistheleaderinTaiwan’slubricantsmarketwithitsdualbrand-“CPCLUBE”(brandingslogan:abrandwithmission)“Mirage”(brandingslogan:professionalautomotivelubricants)inTaiwanandsellsitsproductstobothdomesticandoverseasconsumers.Intermsofthedomesticmarket,theLBDnowhasover30distributorsandsellsitsproductsatover600domesticgasstationsdirectlyoperatedbyCPCandleadinghypermarketchains,providingcomprehensive,convenientanddiversifiedafter-salessupport. Since2011,theLBDhasoperatedanautomatedprecisionblendingsystem,uniqueinTaiwan,foritsproducts.LocatedinChiayi,itsconstructionwascompletedin2016,takingfiveyears.Thisplanthassharplyliftedthelevelofefficiencyandproductqualityinlubricantsproduction,whichrunsatanannualoutputofupto90thousandkiloliters.Aftertheinstallationoflubricatinggreaseproductionmachinerywithanannualoutputofmorethan3,300tonsaspartofarenovationproject,CPC’slubricantproductionequipmentandcapacityissecondtonone,notonlyinTaiwanbutalsointhewiderAsia-Pacificregion. Inaddition,CPChassetupahighlyefficientlogisticsnetworkwithfourwarehousesforfinishedproductsinnorthern,centralandsouthernTaiwan,whichworksasadistinctcompetitiveadvantageintermsofsalesperformance.Since2018,CPChascarriedoutatwo-phaseconstructionprojectofstoragefacilitiesforbaseoilsatTaichungPorttofacilitateitsdomesticsupplyandexport.Infuture,CPCwillnotonlyincreasesupplycapacityofbaseoilandlaunchdifferentiatedmarketing,butalsoapplyforbondedstoragefacilitiestobeusedasoperationcenterofouroilproductsforinternationaltrading.Inadditiontocultivatingitsdomesticmarket,theLBDisalsovigorouslyexpandingintheAsia-Pacificregion.China,Philippines,Indonesia,Vietnam,Myanmar,India,Thailand,Australia,CongoandSurinamhavedistributionoutletsanddirectcustomers.TocircumventtheASEANtariffbarriertonon-members,CPChasrecentlysetupMaxihubCorporationinVietnam’sTong-Naiprovincewithjoint-venture.Thiscompanywilloperatefacilitiesforreceivingandwarehousingofpetrochemicalsandlubricantblending.Productionisprojectedtobeginintheendof2021.Inthefuture,CPCwillusetheMaxihubCo.asitssecondproductionbaseandmovetowardtheoperationalmodelofdiversifiedinternationaltradeofoil-derivedproductsasameansofexpandingitspresenceinoverseasmarkets. Withthegradualriseofelectricvehiclesandshrinkingofautomotivelubricantsmarket,marineengineoilbecomesanimportantdirectionoffuturedevelopmentforLBD.Inthepastfewyears,thecertificationteamhasovercomedifficultiesandcompletedcomplextestingprocessestoobtainmultipleimportantinternationalcertifications,includingMANES,WinGD,YANMAR,Daihatsu,Mitsubishi,KEMELandWartsilasternshaftsealcompatibility,withunwaveringeffortsandgreatteamwork.AforesaidbreakthroughshavebeenthemodelandinnovationindicatorsforCPC.TheaforementionedachievementisakeymilestoneofinnovationinthehistoryofCPC. Inaddition,LBDhasalsobeencommittedtotheestablishmentofabrandimageinrecentyears.Inboth2019and2020,CPC’slubricantproductswerenotonlyawardedtheNationalBrandYuShanAwardforBestProduct,butalsowonthe“ReputableBrand”goldawardoflubricantcategorybyReader’sDigest.ItshowsthatLBD’strustworthybrandimageisnowaffirmedbythegeneralpublicaftertheCompany’shardworkonqualitycontrolovertheyears. LBDwillcontinuetoleverageitscorecompetenciesinproduction,channeldistribution,logisticsandwarehousing,qualitycontrolandtestingaswellastechnicalsupportandendeavortodevelophigh-qualityproducts,providesophisticated,servicesandcomprehensivetechnicalsupporttobettermeetmarketandcustomerneeds.Lookingtothefuture,theLBD’svisionencompassesmaintainingitsleadoverthecompetitioninthedomesticmarketandmakethelubricantbrands-CPCLUBEandMirage,becomewell-knownworldwide. SOLVENTS&CHEMICALS‡dominanthomemarketpositionisthebasisforAsia-Pacificexportambition CPCholdsadominantmarketsharepositioninTaiwan’ssolventsandchemicalssector:around74%insolvents,43%intoluene,46%inxylene,49%inasphaltand50%insulfur. CPC’sSolvents&ChemicalsBusinessDivisionaimstoachieveitsexpansion-orientedoperationalobjectivesinanumberofways.Thisinitiallyinvolvestakingavigorousandrigorousapproachtoprovidingefficientcustomerservice,aswellasexpandingexportstopromisingmarketssuchasMainlandChina,Vietnam,andotherpromisingASEAN/AsiaPacificmarkets-whichisverymuchinlinewiththecentralgovernmentNewSouthboundPolicy.Thereisalsomucheffortgoingintoanumberofinitiatives,suchasenhancingproductqualityandimage,continuousimprovementoftherefiningprocessandloweringproductioncosts.Mostimportantofall,atSolvents&Chemicalstheyaredevelopingnewandinnovativeproductsandnewareasofbusiness. 2021 Back Top close::: GlobalOperations UpstreamOperations DownstreamOperations AccountingManualforOverseasInvestment Technology&Innovation Research& Development ProductsandPricing PollutionPrevention&EnvironmentProtection HistoricalGasolineandDiesselPrices CSR&Sustainability SustainableDevelopment EnergyConservation&CarbonReduction R&DPoliciesandCircularEconomy ResponsetoClimateChange&EcologicalConservation WorkplaceandEmployeeDevelopment SocialCare AnnualSustainabilityReport FeaturedStories CareerswithCPC TradingwithCPC RegistrationProcedureforBuyersofCPC′sPetroleumProductforExport RegistrationProcedure/Pre-qualificationForSellersofCPC′sPetroleumProductImport RegistrationProcedure/Pre-qualificationForSmallCargoBuyersofCPC′sPetroleumProductExport RegistrationProcedureforSpotCrudeOilSuppliers CrudeOilProcurementProcedure PetroleumProductsExportTenders PetroleumProductsImportTenders News&Events FooterLink GovernmentWebsiteOpenInformationAnnouncement Privacy Security OfficialMailbox Headoffice：NO.2,TSO-NANRD.,NAN-TZUDIST.,KAOHSIUNG,TAIWAN81126R.O.C/Tel:886-7-5824141/Fax:886-7-5834228 Taipeioffice：No.3,SongrenRd.,SinyiDistrict,TaipeiCity,Taiwan11010R.O.C./Tel:886-2-87898989/Fax:886-2-87899041 Tollfreenumber:1912 Copyright©2013 CPCCorporation,Taiwan Allrightsreserved. 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