JGC Holdings Corporation, in a consortium that includes leading Taiwanese construction firm RSEA Engineering Corporation, Taiwan’s Do & Find Engineering Consultants and another company, has been awarded a contract for construction of LNG terminal facilities from state-owned oil and gas company CPC Corporation.
The project calls for engineering, procurement, construction, and commissioning (EPCC) services for Kaohsiung-based CPC Corporation, which will involve construction of eight LNG vaporizers and associated facilities in Taichung. This is a lump-sum contract for approximately 60 billion yen, with the JGC portion being nearly 34 billion yen. Delivery is scheduled for 2024.
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 liquefied natural gas (LNG) and renewable energy. To this end, the project will expand the existing Taichung LNG receiving terminal and add the new terminal being constructed. Specifically, the consortium has been contracted to build eight vaporizers (with a total capacity of 1,600 tons per hour) and ancillary facilities at the LNG receiving terminal.
Compelling factors that may have led to this order by CPC included technical proposal capabilities meeting client needs, project execution planning that ensures quality, safety, and fast turnaround, and a project execution framework that maximizes each company’s considerable experience.
Taiwan plans to increase power generation fueled by natural gas to 50% of the island’s total power generation by 2025, up from about 30% at present. This commitment is reflected in the active expansion of LNG imports and storage capacity by CPC and Taiwan Power Company (TPC). Construction of several new LNG receiving terminals is also planned. After successful completion of this project, the JGC Group will pursue subsequent projects here.
The JGC Group has positioned LNG receiving terminals in the Asian region as a growth segment and market for EPC business, as outlined in the medium-term business plan (BSP 2025). Building on this project, we will work to secure other new orders, as we contribute to global environmental conservation through expanded use of LNG.