The Ultimate Taiwan LNG Guide

This Taiwan LNG guide is a comprehensive resource for everyone interested in LNG markets and the importance of LNG for Taiwan in the energy transition. Our Taiwan LNG guide will be updated from time to time and covers market mechanisms, regulations, supply chain requirements, and infrastructure details. Our guide was last updated on 12 October 2024.

What is LNG

Liquefied Natural Gas or LNG is methane, or methane mixed with ethane, cleansed of impurities and cooled to approximately -160 degrees Celsius. This turns the gas into a liquid, which takes up 600 times less space and makes it possible to transport it in LNG tankers, or ISO LNG containers.

Once LNG is shipped to its destination, it is turned back into a gas via a regasification unit and used, like any other natural gas, mainly for heating, cooking and power. LNG bunkering is also increasing in popularity, a process of transferring LNG from a distribution terminal to a ship for use as fuel.

The energy transition

Following the international trend towards a sustainable world, Taiwan’s Pathway to Net-Zero Emissions in 2050 published in March 2022 has a clear focus on the energy transition with 3 clear action points. The first action point is building a zero-carbon energy system by 1) maximizing renewable energy, 2) decarbonizing thermal power development, 3) phasing out of coal, 4) building a zero-carbon fuel supply system, and 5) introducing advanced technologies for zero-carbon energy utilization. The second action point is improving the energy system resilience by 1) prioritizing the expansion of renewable energy grid infrastructure, and 2) expanding the energy-storage facilities for renewable energy. The third action point is focusing on green growth by 1) creating a green energy industry ecosystem, and 2) promoting decarbonization investment and international cooperation.

Taiwan’s energy transition principle is based on “promote green energy, increase natural gas, reduce coal-fired, achieve nuclear-free” to ensure a stable power supply and to reduce air pollution and carbon emissions. The Ministry of Economic Affairs (MOEA) has therefore adopted a “20-30-50” formula by 2025 to keep itself on track to meet its net-zero goal: 20 percent from renewable energy sources, 30 percent from coal-powered plants, and 50 percent from LNG. This plan also includes the phase out of nuclear energy by 2025.

Importance of LNG for Taiwan

While Taiwan works towards net-zero emissions and the use of more renewable energy developments, it is also boosting focus on LNG as part of its long-term energy mix strategy. The energy target in Taiwan is that gas power generation accounts 50% of overall power generation. Power generation accounted for 83.6% of Taiwan’s total LNG demand in 2022, up 3.4% year on year. The authorities justify this increasing reliance on LNG as a move to replace coal, which is the world’s dirtiest burning fossil fuel. However, when used for power generation, gas emits at least half of the carbon dioxide (CO2) compared to coal.

Sourcing of LNG

The global LNG market in 2023 marked a pivotal phase characterized by modest growth and dynamic shifts due to geopolitical and economic changes. The number of importing countries rose to 48, while the number of exporting countries remained steady at 20.

According to the 2024 GIIGNL Annual Report, the market saw a modest growth of 2.1%, reaching 401 million tons, a slowdown from the 5.6% growth in 2022. This growth was driven by Asia (+7 million tons) and the Americas (+1.2 million tons) whereas Europe’s demand remained stable at 121 million tons. Taiwan’s LNG imports were almost unchanged with 20.2 million tons of LNG in 2023 against 20.4 million tons in 2022. This stability is the result of the shift of power generation mix towards more renewables but also less coal and the phase out of nuclear power generation planned for 2025.

The IGU 2024 World LNG Report highlights that Taiwan’s 20.2 million tons of imports in 2023 represent a market share of 5% of global imports. Taiwan imports about 99% of natural gas, with 1% being indigenous. Taiwan’s major LNG suppliers were largely unchanged: 40% for Australia, 28% for Qatar and 10% for the US. The world’s largest exporters of LNG are Australia, Qatar and the US, but Taiwan’s LNG was imported from 16 countries in 2019. With the growing importance of LNG in power generation, Taiwan’s LNG demand will continue to grow.

CPC Corporation (CPC) is currently the only buyer of LNG in Taiwan, but Taiwan Power Company (TPC) has been approved to purchase LNG by itself on August 29, 2014. For some future gas-fired projects, Taiwan Power Company (TPC) will source and procure some LNG by themselves.

Stockpile requirements

Currently, the minimum days of storage capacity and security stockpile are respectively 15 days and 7 days of daily gas supply. But this requirement is insufficient in view of increasing LNG demand and potential supply chain disruptions when shipping LNG from overseas markets to Taiwan.

The security stockpile required will therefore need to be at least 14 days in 2027, while the minimum days of storage capacity required will need to be at least 24 days in 2027. To achieve this increase, new infrastructure is being constructed and planned.

Taiwan LNG Development Infographic

Below is a handy Infographic to give you a simple overview of the critical LNG developments in Taiwan.

LNG tank terminal infrastructure

There are currently two LNG tank terminals in operation in Taiwan, while a third one will come into operation in 2025. Since LNG is important for Taiwan’s energy transition, there are several expansions and new project opportunities.

The below map shows the LNG terminals that are in operation, and projects that are being discussed or developed.

Tank Terminal 1: Keelung LNG Terminal, TPC

Status: project
Owner & operator: Taiwan Power Company (TPC)
Number of tanks: NA
Start date: NA
Capacity: NA
Number of vaporizers: NA
Number of berths: NA
Coordinates: 25.160826661219886, 121.73626429114945

The Keelung terminal, also known as the Xie-He LNG terminal, is a proposed LNG terminal in Keelung that will be built on reclaimed land next to Taiwan Power Company’s Xie-He power plant. This project is to support the energy transition and the use of cleaner feedstock at the power plant. The project is still undergoing feasibility studies and an environmental impact review. The projected start date is unknown at the moment.

Tank Terminal 2: Taoyuan LNG Terminal, CPC

Owner & operator: CPC Corporation (CPC)
Status: under construction
Start date: 2025
Number of tanks: 0 (2025: +2)
Capacity: 0 CBM (2025: +320,000 CBM)
Number of vaporizers: NA
Number of berths: 0 (2025: +1)
Coordinates: 25.045106592881837, 121.06114578226507

CPC Corporation (CPC) is developing the third LNG terminal in Guantang, Taoyuan, constructing two above ground LNG storage tanks with a capacity of 160,000 CBM each. The project with a total storage capacity of 320,000 CBM started in 2016 and is scheduled to come on stream around the middle of 2025. Through the new tank terminal, LNG will be supplied to Datan Power station.

Tank Terminal 3: Taichung LNG Terminal, CPC

Owner & operator: CPC Corporation (CPC)
Status: operational, under expansion
Start date: 2009
Number of tanks: 6 (2026: +2, 2028: +4)
Capacity: 960,000 CBM (2026: + 360,000 CBM, 2028: 720,000 CBM)
Number of vaporizers: 10 (2026: NA, 2028: NA)
Number of berths: 1 (2028: +2)
Coordinates: 24.253053207323383, 120.49711891031029

The second LNG terminal in Taiwan owned and operated by CPC Corporation (CPC), with currently 6 above ground storage tanks and a total capacity of 960,000 CBM, is undergoing an expansion in two phases. Two additional tanks of 180,000 CBM capacity each are scheduled for completion by the end of 2026 and will add an additional 360,000 CBM. In a final phase, 720,000 CBM is scheduled to be added by the end of 2028 with four more tanks of 180,000 CBM and two additional berths being planned.

Tank Terminal 4: Taichung LNG Terminal, TPC

Owner & operator: Taiwan Power Company (TPC)
Status: project
Start date: NA
Number of tanks: 0 (Planned: 5)
Capacity: 0 (Planned: NA)
Number of vaporizers: 0 (Planned: NA)
Number of berths: 0 (Planned: 1)
Coordinates: 24.236143732147514, 120.47098806206766

Taiwan Power Company (TPC) plans to install two gas-fired combined cycle units adjacent to its existing Taichung coal-fired power plant. This project will include an LNG tank terminal with five storage tanks and a berth. It will be the company’s first built and self-operated LNG terminal. The projected start date is unknown at the moment.

Tank Terminal 5: Mailiao LNG Terminal, FPG

Owner & operator: Formosa Plastics Group (FPG)
Status: project
Start date: 2028
Number of tanks: NA
Capacity: NA
Number of vaporizers: NA
Number of berths: NA
Coordinates: 23.76144972393909, 120.16749642053307

In 2023, the Taipei Times wrote that Formosa Plastics Group (FPG) was planning to convert their Mailiao power plant into one that burns LNG instead of coal. That could happen as soon as 2028, but no updates have been reported since.

Tank Terminal 6: Yong-an LNG Terminal, CPC

Owner & operator: CPC Corporation (CPC)
Status: operational
Start date: 1990
Number of tanks: 6
Capacity: 690,000 CBM
Number of vaporizers: 18
Number of berths: 3
Coordinates: 22.80945808813444, 120.20501762520782

This is the first LNG receiving terminal in Taiwan with 6 underground LNG storage tanks and a total capacity of 690,000 CBM. There are three storage tanks with a capacity of 100,000 CBM, and three storage tanks of 130,000 CBM each. It was said that CPC Corporation (CPC) did a feasibility study for 2 or 3 additional storage tanks, but no updates have been reported.

Tank Terminal 7: Kaohsiung LNG Terminal, CPC

Owner & operator: CPC Corporation (CPC)
Status: project
Start date: 2031
Number of tanks: NA
Capacity: NA
Number of vaporizers: NA
Number of berths: NA
Coordinates: 22.517885320722016, 120.31553227078459

CPC Corporation (CPC) plans to build an LNG tank terminal at the second phase of the Intercontinental Container Terminal in Kaohsiung by 2031. This terminal will take pressure off the Yong-An LNG terminal and improve the stability of the gas supply in the South.

Regasification Units

As the sixth largest LNG importer in 2023, Taiwan has seen high regasification utilization of over 120%. Taiwan’s first two LNG import terminals cover a total regasification capacity of 16.5 MTPA in 2024.

Pipeline infrastructure

Coming soon

LNG fleet

According to the IGU 2024 World LNG Report, at the end of February 2024, the total LNG fleet of Q-Class and conventional LNG vessels with a capacity greater than 30,000 cm consisted of 644 operational vessels excluding 47 FSRUs and 10 FSUs. There was a 5% growth in the fleet size from 2022 to 2023, comparable to a 1.7% growth in the number of LNG voyages, representing a healthy supply of LNG vessels relative to the expansion in LNG trade. As of February 2024, the LNG newbuilding orderbook comprised 359 LNG ships. This incredible increase in orderbook is the effect of new liquefaction capacity and tighter emissions regulations.

The state of the fleet is important as Taiwan relies on chartering LNG vessels to import LNG from overseas markets. While the large orderbook is positive news, Taiwan is considering building their own LNG fleet.