Page 9 - AsiaElec Week 10 2022

AsiaElec GAS GENERATION AsiaElec

Taiwan’s CPC

increases LNG price

for power generators

TAIWAN TAIWAN’S state-owned CPC Corp. has the Taipai Times quoted CPC spokesman Ray
increased the price of LNG going to electricity Chang as saying. He said the domestic supply of
generators by 10% for the month of March, the LNG remains stable, but added that world mar-
Taipei Times reported. The move comes as Rus- ket prices have exceeded CPC’s procurement
sia’s invasion of Ukraine hits energy markets, costs.
causing the prices of oil and gas to soar. CPC reported a loss of TWD43.4bn
CPC has sought to keep gas prices stable as ($1.55bn) in 2021, and its loss for 2022 is
part of government policy to put a lid on rising expected to be even higher due to higher LNG,
consumer costs, which climbed by 2.84% in Jan- the daily suggested.
uary, exceeding the Central Bank’s target cap of Following the invasion of Ukraine in late
2%. February, Taiwan’s Ministry of Economic Affairs
However, the price of LNG for power gener- said the country does not face an imminent risk
ation has been bumped up in the face of rising to energy supply as it has sufficient stocks of oil
prices in recent months, with the government and LNG.
absorbing the extra cost. The price of LNG sold Minister Wang Mei-hua said the island buys
for power generation on the island was raised LNG primarily from Qatar, Australia and Indo-
by 3% in August and September in 2021 as gas nesia, and that LNG deliveries had been follow-
prices began to rise on the international market. ing monthly shipment schedules. Wang said
The CPC hiked LNG prices by 5% in November Russia was one of Taiwan’s suppliers, but that that
and December 2021 and by 10% in January this contract was due to expire in March. After that,
year. he said, Taiwan would either sign new contracts
“We are keeping LNG prices unchanged for with potential suppliers or acquire LNG on the
industrial and household users since June last spot market.™
year, despite the uptrend in global LNG market,”

Week 10 09•March•2022 www. NEWSBASE .com P9