Japan’s JFE Engineering bags contract for CPC’s third LNG terminal in Taiwan

Japan’s JFE Engineering said it had secured a contract for CPC’s third LNG import facility in Taiwan.

According to a statement by JFE Engineering, the lump sum contract for the LNG terminal in Taoyuan is worth about 30 billion yen ($229 million).

The firm received an order for engineering, procurement, construction, and commissioning (EPCC) work.

JFE Engineering said this project involves the construction of an LNG receiving facility 1.2 km offshore from the coast at CPC’s third LNG receiving terminal in the Guantang Industrial Zone of Taoyuan City.

The LNG receiving facility, which will be installed on a concrete caisson pier, will consist of seawater intake facilities, cryogenic piping, and other facilities, it said.

In addition, in order to minimize the risk of construction disruptions and shorten the construction period, the firm will use the modularized construction method for the first time in Taiwan, JFE Engineering claims.

This means that the firm will complete the frame, piping, and other equipment at a manufacturing facility and then transport it to the construction site by sea for on-site installation.


JFE Engineering expects to complete the project in May 2025.

The firm noted that it previously constructed Taiwan’s first underground LNG tank (completed in 1990) at CPC’s Yung-An facility in Kaohsiung.

Besides Yung-An, CPC also has the Taichung import terminal and is expanding this facility due to high demand for natural gas.

These two LNG import terminals currently have a capacity of some 16.5 million mt per year, while the LNG terminal in Taoyuan will have a capacity of 3 million mt per year.

According to CPC’s website, the state-owned firm is building the third LNG import terminal to meet increasing demand for natural gas by Taipower and industrial and commercial consumers in northern Taiwan.

It expects the costs to build the facility to reach almost $2 billion and plans to launch the facility by December 2025.

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