Taiwan and fossil gas
Under the Renewable Energy Development Act, Taiwan has set a goal to increase gas-fired power generation to 50% and renewable power to 20% by 2025 and to phase out nuclear power. Taiwan plans to add around 10 GW of gas-fired capacity in order to meet this energy plan goal. Taiwan's GDP growth rate is forecasted at 3.22% in 2021 and expected to remain around 2% annually for the 2021-2025 period.
CPC Corporation is Taiwan's state-owned petroleum company and is the largest natural gas supplier in the country. It is currently Taiwan's only LNG importer.
TaiPower is state-controlled and single biggest natural gas consumer in Taiwan. TaiPower is expected to start importing LNG by 2023.
Natural Gas Demand
In 2019, Taiwan had a total natural gas consumption of 23.3 bcm.
Energy Transition Plan
Taiwan's energy transition plan indicates natural gas in Taiwan's power generation will increase to 50% by 2025 from its current level of 38%.
The plan also aims for renewable energy to grow to 20%, from around 5-6% currently, and for coal to fall to 30% in 2025 from 47% of the energy mix currently.
Key Demand Drivers
Since Taiwan's energy transition plan calls for 50% of power generation to come from natural gas by 2025, the power sector will be a key driver of gas demand. In 2019, the power generation sector accounted for 88% of LNG demand.
The government has mandated that all industrial sectors are only allowed to use natural gas as fuel, which means the industry sector will be a key driver of gas demand. 
Projection of Demand Growth
A 2019 Wood MacKenzie report, forecasts LNG demand to increase on average 5.2% a year from 2020 to 2025, or from 17.5 mmtpa (24.1 bcm) in 2020 to 22.5 mmtpa (31 bcm) in 2025. From 2026 to 2040, LNG demand is forecasted to remain between 22.7 mmtpa (31.3 bcm) and 24.9 mmtpa (34.3 bcm).
CPC, the country's only LNG importer, has stated that they will need to import 29.6 mmtpa of LNG, or 40.8 bcm, in order to meet the government's policy of 50% natural gas in the energy mix by 2025.
Natural Gas Supply
Taiwan imports almost all of the natural gas it consumes. In 2019, Taiwan imported 22.8 bcm of LNG, with 6 bcm from Australia, 6.4 bcm from Qatar, 3.4 bcm from Malaysia, and 2 bcm from Papua New Guinea and the rest from a variety of other countries.
In 2019, CPC's currently operating natural gas wells, located in and around Mt. Tiezhen, Quincao Lake, Jinshui, Chuhuangkeng, and Guantian produced 0.167 bcm of gas.
In 2012, CPC and Husky Energy International Corp. formed a joint venture to search for oil and gas in the off-shore deep water Block Deep Water 1 (DW-1) in Tainan basin. In 2019, 3D seismic inversion and analysis was complete and assessment of the data for potential drilling areas is ongoing.
Potential New Gas Sources
Taiwan has very limited indigenous energy resources. CPC has made efforts to explore potential areas in Taiwan. In 2018, CPC completed a 2D seismic survey of potential hydrocarbon structures near the Pingtung Plain. 
In 2017, CPC, TOTAL, and CNOOC signed a Production Sharing Contract for the Taiyang Block in the South China Sea and preliminary exploration is ongoing.
Current Gas Supply Projects
Proposed Gas Supply Projects
Table 1: Proposed LNG Import Terminals in Taiwan
|Project Name||Location||Capacity||Expected Commencement Date||Sponsor||Project Status||Main Users|
|Taoyuan LNG Terminal||Datan||3.0 mtpa||October 2022||CPC||Under construction||Will supply Datan CC Power Plant Expansion|
|Hsieh-Ho LNG Terminal||Jilong Harbour||1.8 mtpa||Phase 1 (FSRU): 2025
Phase II (LNG Terminal): 2032
|TaiPower||Proposed||Will supply Hsieh-Ho Power Plant Renewal project; Phase I will use FSRU due to issues with building a natural gas pipeline|
|Taichung LNG Terminal Expansion||Taichung Harbour||1.4 mtpa||2023||TaiPower||Proposed||Will supply Taichung power plant Units 1&2 and Tunghsiao power plant Units 4-6|
Table 2: Proposed Gas Power Plants in Taiwan
|Project Name||Location||Capacity||Expected Start||Sponsor||Project Details/Status|
|Chiahui Power Plant Expansion||Chiayi province||550 MW||2021||Chiahui Power Corporation||Under construction|
|Datan CC Power Plant Expansion||Taoyuan, Taiwan||Unit 7: 913 MW
Unit 8&9: 2247 MW
|Unit 7: 2024
Unit 8: 2022
Unit 9: 2023
|Taiwan Power Co (Taipower)||40% complete|
|Hsinta CC Renewal Project||Yongan, Kaohsiung||3900 MW||2024||Taiwan Power Co (Taipower)||20% complete|
|Taichung CC Power Plant||Longjing District, Taichung||2600 MW||2025||Taiwan Power Co (Taipower)||Project also includes LNG gasification terminal with five LNG storage tanks and associated auxiliary facilities and pipelines|
|Hsieh-ho Power Plant Renewal Project||Keelung City||1000 MW||Unit 1: 2025
Unit 2: 2030
|Taiwan Power||Proposed renovating and converting into a gas-fired power plant|
Table 3: Proposed Gas Pipeline Projects in Taiwan
|Project Name||Capacity (bcm/yr)||Owner||Expected Start||Length (km)||Diameter (inches)|
|Tongxiao-Taoyuan Gas Pipeline||China National Petroleum Corporation||500 km|
|Taichung-Tunghsiao-Tatan offshore Pipeline||China National Petroleum Corporation||138 km||36 in.|
|Yongan-Tongxiao Pipeline||China National Petroleum Corporation||238 km|
Projection of Gas Production
LNG imports meet also all of Taiwan's natural gas needs due to limited domestic resources. CPC, the country's only LNG importer, has stated that they will need to import 29.6 million metric tons of LNG, or 40.8 bcm, in order to meet the government's policy of 50% natural gas in the energy mix by 2025.
Articles and Resources
Related GEM.wiki articles
- "Renewable Energy Development Act - Article Content - Laws & Regulations Database of The Republic of China". law.moj.gov.tw. Retrieved 2021-02-04.
- "Taiwan LNG demand immune to COVID-19; 2021 purchases to grow: CPC | S&P Global Platts". www.spglobal.com. 2020-09-09. Retrieved 2021-02-04.
- "Taiwan - gross domestic product (GDP) growth rate 2015-2025". Statista. Retrieved 2021-02-12.
- Hou, Evan A. Feigenbaum, Jen-yi; Hou, Evan A. Feigenbaum, Jen-yi. "Overcoming Taiwan's Energy Trilemma". Carnegie Endowment for International Peace. Retrieved 2021-02-06.
- "APEC Energy Demand and Supply Outlook 7th Edition". APEC. Retrieved February 6, 2021.
- "Energy Supply and Demand Situation of Taiwan in 2019". Taiwan Bureau of Energy. Retrieved February 6, 2021.
- "Taipower expects to start LNG imports from 2023". www.gasprocessingnews.com. Retrieved 2021-02-06.
- "BP Statistical Review of World Energy 2020" (PDF). BP. Retrieved February 4, 2021.
- "Natural Gas Plays Outsized Role in Taiwan's Energy Transition". Taiwan Business TOPICS. 2020-10-27. Retrieved 2021-01-27.
- Mackenzie, Wood (2019-12-16). "Energy Research & Consultancy". www.woodmac.com. Retrieved 2021-02-04.
- "First supply of liquefied natural gas from Cheniere arrives in Taiwan - Focus Taiwan". focustaiwan.tw (in 中文). Retrieved 2021-02-04.
- 2.16.886.101.20003.20007.20123. "CPC Corporation, Taiwan". CPC Corporation, Taiwan. Retrieved 2021-02-04.
- "TOTAL SIGNS A PRODUCTION SHARING CONTRACT WITH CNOOC AND CPC FOR TAIYANG EXPLORATION BLOCK IN SOUTH CHINA SEA". Retrieved February 4, 2021.
- "CPC 2020 Annual Report" (PDF). CPC. Retrieved January 28, 2021.
- "Taipower seeking LNG supply for Hsieh-Ho terminal". Offshore Energy. 2018-07-13. Retrieved 2021-01-27.
- "CTCI scores $647 million Taichung LNG terminal contract". Offshore Energy. 2020-09-11. Retrieved 2021-01-27.
- "Chiahui Power Corporation's Combined-Cycle Power Plant in Taiwan Awarded "Model Site" for Best in-Class Safety and Health Management by Taiwan OSHA | GE News". www.ge.com. Retrieved 2021-01-27.
- Company, Taiwan Power (2020-10-27). "Progress of Thermal Power Plant Projects - Engineering Information - Information Disclosure". Taiwan Power Company. Retrieved 2021-01-27.
- "Hsinta Combined-Cycle Power Plant Renewal - NS Energy". Retrieved 2021-01-27.
- "Taichung Combined-Cycle Power Project, Taichung, Taiwan". Retrieved 2021-01-27.
- Company, Taiwan Power (2020-02-24). "Power Development Planning - Power Supply and Demand - Information Disclosure". Taiwan Power Company. Retrieved 2021-01-27.