Tien-Sung Chien

1
Tien-Sung Chien
Energy Commission Ministry of Economic Affairs
October 5, 2001
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CONTENTS
A. Natural Gas Supply and Demand in 1980-2000 B.
Outlook for Natural Gas C. Measures for Promotion
of Natural Gas Utilization D. Conclusions
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Natural Gas Supply and Demand in 1980-2000
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Energy Supply Structure ( 1980 - 2000)

year
5
Natural Gas Supply (1980-2000)
103m3
Indigenous
Imported
Year
6
Natural Gas Imports (1990-2000)
Million tons
4.43
4.00
3.93
3.22
2.61
2.46
2.26
1.70
1.70
1.51
0.71
Year
7
Natural Gas Consumption (1980-2000)
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City Gas Utilities Profile
Number of Utilities25
Material Natural gas / LNG
Clients2.15 million

• Gas Sales1billion cubic meters in 2000
• 2.74 million cubic meters per
  day

Gas PricesNG1 11.18-13.46NT
NG2 13.29-15.01NT
Gas Pipeline Length16,000KM
High Pressure Pipeline2,600KM
Middle Pressure Pipeline4,600KM
Low Pressure Pipeline8,800KM
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Gas Prices
Unit NT/M3
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Outlook for Natural Gas
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Outlook for Natural Gas
? Over the next two decades, the demand for
natural gas is expected to grow significantly.It
will be increased from 4.8 million tons in 2000
to 13 million tons in 2010 and 16 million tons in
2020.
? The contribution of natural gas to total
primary energy supply will increase from 7 in
2000 to 14 in 2020.
? Natural gas for power generation will remain
the largest consuming sector and occupy 60 -70
of total natural gas consumption.
? The share of gas-fired unit to total power
generation will increase from 16 in 2000 to 25
in 2020.
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Projected Gas - Fired Power Plants
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Gas-Fired Power Plants in Taiwan
Ever Power 960 Mw
Tatan 4,000Mw 2002
Kuo Kung 600 Mw Jun., 2003
Tungsiao 1,060Mw
Hsin Tao 600 Mw Sep., 2001
Hsinta 2,200Mw
Star Energy 490 Mw Apr., 2004
Chiahui 670 Mw Sep., 2003
South 1,090Mw
Sun Ba 980 Mw Apr.,2004
Talin 1,050Mw
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Measures for Promotion of Natural Gas Utilization
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Measures for Promotion of Natural Gas Utilization
? Promote the construction of northern LNG
receiving terminal.
? Expand gas infrastructure including terminal
facilities, inland and sea -bed trunklines,
storage tanks .
? Increase the use of gas through gas- fired
units using in middle load replace peak load
? Encourage the construction of gas-fired units
of IPP.
? Reduce supply cost of natural gas by removing
import tariff and excise tax gradually.
? CPC returns its revenues from canceling
special price for fertilizer industry to all
customers.
? CPC Implements quantify discount system of gas
prices for industry and city gas customers.
? City gas utilities have been allowed to sell
gas to industrial users since 1999.
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Natural Gas Infrastructure
Yang Ming Shan
Shin Jr
Shin Hu
Projected LNG Terminal
Shin Lung
Shin Tai
Shin Taur
The Great Taipai
Shin Shin
Shin Hai
Shin Chu
Chu Chien
C.P.C.
Tung Hsiao
Yu Miao
Shin Chung
Shin Chang
Shin Lin
City Gas Utility
Shin Yun
LNG Terminal Facility
Chu Ming
240KM
Shin Chia
Underground Gas Storage
Shin Ying
Shin Nan
Projected LNG Terminal
Trunk Pipeline
Shin Hsiung
Yung An LNG Terminal
Ring Pipeline
Shin Kao
Shin Ping
Submarine Pipeline
Nan Jen
Constructing New Pipeline
Distribution Station
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CPCs Yung - An LNG Receiving Terminal
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Power Generation Cost in 2000
Unit NT/KWH
Source Taiwan Power Company
19
Quantity Discount of Gas Prices
Source Chinese Petroleum Corporatiom
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Conclusions
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Conclusions
? Natural gas keeps playing an important role in
Taiwans energy supply and demand. ? Private
invested northern LNG receiving terminal will
increase supply diversity and hence improve the
security of gas supply in Taiwan. ? New gas
infrastructure should be completed to cope with
existing supply bottlenecks and meet regional
growing demand. ? Enhance the introduction and
development of new technologies of gas supply
system and gas equipment. ? Competitiveness of
gas cost will affect the demand for natural gas.