Taipower LNG Procurement Albert Jen, Deputy Director, Dept. of Fuels, Taipower August 31, 2018

Transcription

1 Taipower LNG Procurement Albert Jen, Deputy Director, Dept. of Fuels, Taipower August 31, 2018

2 Outline 1. Power Generation Mix in Taiwan 2. Taipower s LNG Demand 3. Taipower s LNG Procurement 4. Taichung Project 5. Hsieh-Ho Project 2

3 1. Power Generation Mix in Taiwan 3

4 Make-up of Electricity Generation in Taiwan ,080 GWh 4

5 Taipower Make-up of Electricity Generation ,487GWh 5

6 Make-up of Electricity Generation in Taiwan Government Official Target by

7 Taipower s Existing Gas-fired Power Station Tatan ( 4,984MW) Tunghsiao (1,986MW) Hsinta (2,226MW) CPC Taichung LNG Terminal 11,364 MW CPC Yung-An LNG Terminal Talin (1,050MW) Nanpu (1,118MW) 7

8 Taipower s Existing Gas-fired Units Power Plant Capacity (MW) Commercial Year Tatan #1-#7 (4984MW) TungHsiao New#1 & #4-#6 (1986MW) Hsinta #1-#5 (2226MW) Nanpu #1-#4 (1118MW) Talin #5,#6 (1050MW) 742.7(#1,#2) (#3-#6) 600.0(#7-GT) (New#1) 386.0(#4-#5) (#6) (#1-#5) (#1-#3) 251.4(#4) 500(#5) 550(#6) Total 11, &

9 2. Taipower s LNG Demand 9

10 2009~2017 Taipower s LNG Consumption mmt

11 Gas-fired Units under Planning & Construction Status Power Plant Capacity (MW) Scheduled Operation Year Under Construction Under Planning TungHsiao New #2 - #3 893*2 2019/6, 2020/1 Total 1,786 Tatan #7-ST & CC #8 - #9 (EIS Approved) Taichung CC #1 - #2 (Feasibility Study Approved on Mar. 14, 2018) Hsieh-Ho CC#1~#2 (Feasibility Study Approved on July 4, 2018) 400*1 (#7-ST) 1,000*2 (#8 - #9) 1,300*2 2021/6, 2022/6, 2024/6 2023/9 (Synchronize of GT-1 of CC#1), 2024/3 (CC#1), 2025/6 (CC#2) 1,300*2 2025/6, 2030/6 TungHsiao New #4 - #6 1,100*3 2027/6, 2027/12, 2028/12 Hsinta New CC#1~#3 1,300*3 2023/6, 2024/6, 2026/1 Total 14,800 (13) 11

12 Taipower s LNG Demand Projection Year Purchase from CPC (Million ton) Direct import by Taipower (Million ton) Total (Million ton)

13 3. Taipower s LNG Procurement 13

14 The purpose for Taipower to directly procure LNG and build its own receiving terminal 1. Taipower s procured LNG will be used for its new gas-fired units only and TPC will be joint with CPC to expand Taiwan s LNG import capacity for reasonable utilization rate of receiving terminal. 2. Diversification of gas supply for Taiwan. 3. Direct control gas supply source and costs. 4. Enhance Taipower s operation flexibility and reliability. 5. Raise the inventory level to more than 25 days, ensuring power supply security. Taichung Hsieh-Ho 14

15 Taipower s LNG Long-Term Procurement Procedure 1. Select the premium supplier(s) through REOI (Request for Expression of Interest) and RFP (Request for Proposal) process. 2. Bilaterally negotiate SPA with selected supplier(s). 3. Conduct Limited Tendering as per the Government Procurement Act ( the Act ). The terms and conditions of the bidding documents will be based on mutually agreed SPA. 15

16 Taipower s LNG Long-Term Procurement Process REOI released RFP Issued to qualified suppliers Select suppliers for HOA negotiation HOA signed SPA negotiation Negotiation completed Limited Tendering process as per the Act (The bidding documents will be based on mutually agreed SPA) Contract awarded and signed 16

17 Taipower s LNG Procurement Strategy (1) Procurement Strategy Ensure Supply Security Reduce Procurement Cost 17

18 Taipower s LNG Procurement Strategy (2) 1. Mainly Long-Term Contracts, supplemented by Spot Contracts. 2. Diversification: LNG suppliers are categorized into Portfolio Suppliers (multiple supply sources) and Project Suppliers (single supply source). The supply sources of Portfolio suppliers are distributed in multiple countries, hence achieving Diversification. 3. Inventory: Planned for 25 days for Taipower s own Taichung and Hsieh-Ho LNG receiving terminal. 4. Collect sufficient market information to procure LNG at good timing. 5. Exploring more supply sources. 18

19 Status of Taipower s LNG Procurement 1. Added Natural Gas Import Business as Taipower s new business item in June Issued REOI (Request for Expression of Interest) for Taichung Project on Dec 29, Concluded the LNG Long-Term Contract Procurement Procedures in January Awarded an international energy consultant company to assist Taipower in making LNG long-term procurement for Taichung and Hsieh-Ho projects in March Issued Taichung LNG RFP (Request for Proposal) on June 29, 2018 and proposals in response to RFP submitted by August 15, Issued REOI (Request for Expression of Interest) for Hsieh- Ho Project on July 13,

20 4. Taichung project 20

21 Taichung Project Status Feasibility Study Approved on Mar. 14, 2018 Power Plant Capacity (MW) Taichung CC#1-2 1,300*2 Commercial Operation Date GT1 of CC#1 synchronize-sep 2023 CC#1-Mar 2024 CC#2-Jan 2025 LNG Demand (MT/year) CF 65%:

22 Taichung Power Plant 22

23 Taipower LNG Terminal Taichung Project CC#1 CC#2 Taichung Power Plant CPC LNG Terminal 1. Taichung CC#1&#2 will be located on the Southern side of the existing coal-fired Units 9 and 10. The estimated capacity is 1,300MW/unit LNG storage tanks of 160,000 m 3 each will be built for Taichung CC #1&#2, and an additional 2 tanks will be added for TungHsiao renewed CC #4-#6 (still under planning). 23

24 5. Hsieh-Ho project 24

25 Status Feasibility Study Approved on July 4, 2018 Hsieh-Ho Project Power Plant Capacity (MW) Hsieh-Ho CC#1-2 1,300*2 Commercial Operation Date CC#1-July 2025, CC#2-July 2030 LNG Demand (MT/year) CF 65%:

26 Hsieh-Ho Power Plant 26

27 Time Period Hsieh-Ho Project LNG Receiving Facility Power Generation Unit (Capacity in MW) FSRU CC #1 (1,300) FSRU CC #1 & #2 (2x1,300) onwards Onshore Terminal CC #1 & #2 (2x1,300) 1.8 Onshore LNG Terminal Estimated LNG Requirement (mtpa) CC#1 CC#1 CC#2 27

28 Australia is a Key LNG Supplying Country 1. By 2023, Australia is expected to surpass Qatar as the largest source of liquefaction capacity. 2. Australian LNG suppliers are most welcome to participate in Taipower s LNG supplier selection process for Taichung and Hsieh-Ho Projects. 28

29 Thank You for Your Listening! 29