CPC to boost LNG imports to narrow trade balance

By Liu Ching-hua
and Jake Chung / Staff reporter, with staff writer

State-owned oil refiner CPC Corp, Taiwan (CPC, 台灣中油) plans to boost its procurement of US energy products — including liquefied natural gas (LNG) and crude oil — in response to US President Donald Trump’s 32 percent tariff on Taiwanese exports, sources said yesterday.

President William Lai (賴清德) has said the government intends to expand purchases of US goods, including agricultural, industrial, and energy products, as part of its strategy to narrow the trade balance.

The Ministry of Economic Affairs said it aims for US-sourced LNG to account for 30 percent of Taiwan’s total LNG imports.

Photo: Lin Cheng-kun, Taipei Times

Last year, US LNG made up 10 percent of CPC’s imports, with the company sourcing from 14 different countries, the ministry said.

CPC sources said the target could be met by ramping up existing LNG imports from the US or seeking new supply channels, such as LNG from Alaska.

The company said it has inked a term sheet with select US firms certifying its intent to import LNG from Alaska, although the project could take five to seven years to come online.

The company said that major US energy firms maintain diversified global investments and that it has an understanding with its partners to adjust delivery volumes based on demand and evolving circumstances.

It also said it confirmed it would significantly increase LNG imports from the US over the next four years. It also plans to raise its purchases of US crude oil to help ensure a stable energy supply for the country.

The company said it primarily imports sweet crude oil, or crude with a lower sulfur content, from the US and African countries, adding that sweet crude, while more expensive, was more environmentally friendly.

It is also importing sour crude, or crude with higher sulfur content, from the Middle East, it added.

While the company had been considering scaling back US sweet crude imports due to declining domestic demand for gasoline and diesel, it is now reassessing that decision in light of the government’s push for net-zero emissions and broader energy diversification policies.

US-sourced crude has already increased from 44 percent to 60 percent of CPC’s total imports over the past three years. The rise was partly due to a fire at the company’s Dalin refinery’s heavy oil desulfurization unit on Oct. 27, 2022.

The Dalin facility has since been repaired and is expected to resume operations shortly, CPC said.