Alexa
  • Directory of Taiwan

Taiwan seen likely to rely on spot LNG purchases to meet demand

Taiwan seen likely to rely on spot LNG purchases to meet demand

Taiwan may buy as many as 16 individual liquefied natural gas cargoes for immediate delivery next year to meet soaring demand from power plants, a consultant said.
Taiwan has signed contracts with BG Group Plc and Royal Dutch Shell Plc to import the spot cargoes from Nigeria for the year beginning Oct. 1, Poten & Partners said in its December report. CPC Corp. purchased 31 spot cargoes for the year ending September, paying as much as US$11 a million British thermal units.
LNG meets more than 95 percent of Taiwan's natural gas needs. The island is buying as much as a quarter from the spot market because of insufficient supplies from existing multiyear contracts. About 80 percent of natural gas in Taiwan is used in power generation.
"Taiwan's demand-supply gap, which is now being filled by product secured on spot terms, threatens to become a chasm toward the end of this decade," Poten & Partners said in the report, which was e-mailed on December 24.
Prices of the fuel have climbed in recent months to a record US$12 a million British thermal units after an accident in March at a Tokyo Electric Power Co. nuclear plant increased demand for LNG to run gas-fired generators, according to consultant Facts Inc.
CPC's general manager for LNG purchases, Jane Liao, declined to comment on Taiwan's spot cargoes when reached by phone December 24.
Sourcing globally
CPC paid between US$8 and US$11 a million British thermal units for spot cargoes totalbing about 1.9 million metric tons in the 12 months to September, the report said. Taiwan, Asia's third- biggest LNG importer after Japan and South Korea, imported about 7.4 million tons of LNG in 2006, according to BP. One cargo of LNG is about 60,000 tons.
The state oil company purchased 10 spot cargoes from Egypt, seven from Qatar and six from Oman, the report said. Australia supplied three cargoes, Algeria and Trinidad two each and Nigeria one. Taiwan has multiyear contracts with Malaysia, Indonesia and Qatar.
LNG is natural gas that has been chilled to liquid form, reducing it to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 259 Fahrenheit), for transportation by ship to destinations not connected by pipeline.


Updated : 2021-04-20 08:22 GMT+08:00