A consortium led by Japan’s JGC has secured a contract from Taiwan’s CPC Corp to build LNG terminal facilities in Taichung.
JGC said in a statement on Wednesday that the consortium includes Taiwanese construction firm RSEA Engineering Corporation, Taiwan’s Do & Find Engineering Consultants and another company.
The project calls for engineering, procurement, construction, and commissioning (EPCC) services for state-owned CPC, which would involve construction of eight LNG vaporizers with a total capacity of 1,600 tons per hour and associated facilities in Taichung, according to JGC.
The lump-sum contract has a price tag of about 60 billion yen ($483.9 million), with the JGC portion being nearly 34 billion yen, it said.
Boosting LNG power
Current energy policy in Taiwan seeks to end nuclear power generation and phase out coal-fired power while actively introducing “clean energy sources” such as LNG and renewable energy.
Taiwan plans to increase power generation fueled by natural gas to 50 percent of the island’s total power generation by 2025, up from about 30 percent at present, JGC said.
CPC and Taiwan Power Company (TPC) are both working on expansion of LNG imports and storage capacity.
To this end, the new project would expand CPC’s existing Taichung LNG receiving terminal and add the new terminal being constructed, JGC said.
JGC expects the completion of the project in 2024.
CPC currently operates two LNG import facilities, namely Taichung and the Yung-An facility in Kaohsiung, but it is also working on a third plant in Taoyuan.
The firm mainly imports LNG from Qatar, Australia, Russia, and the US. Last year, it signed a new 15-year deal with QatarEnergy and started importing LNG under a long-term contract with US LNG player Cheniere.