CPC Corporation, Taiwan
CPC Corporation, Taiwan (Chinese: 台灣中油, literally Taiwan Chinese Petroleum) is a state-owned petroleum, natural gas, and gasoline company in Taiwan and is the core of the Taiwanese petrochemicals industry.
|Joint-stock company (State-owned enterprise)|
|Industry||Oil and gas|
|Founded||1 June 1946|
|Tai Chein (Chairman)|
|Revenue||TWD 1,187.7 billion (2013)|
Number of employees
|Parent||Ministry of Economic Affairs|
|Subsidiaries||CPC Corporation, Taiwan-Libya Branch|
CPC was founded on 1 June 1946 in Shanghai as Chinese Petroleum Corporation (中國石油) by the government of the Republic of China (ROC, then on Mainland China). With the Kuomintang's retreat to Taiwan after the Chinese Civil War, CPC was transferred from the Council of Resources to the Ministry of Economic Affairs. The company merged all relevant facilities and companies (Japanese 6th Naval Fuel Depot, Teikoku Oil, Nippon Oil, etc.) in Taiwan. Its main businesses include surveying, extracting, refining, transporting, and selling petroleum. It also produces various chemicals and has retail outlets all over Taiwan. CPC's fixing of petrol prices helped Taiwan through the 1970s Energy Crisis.
Democratization and modern historyEdit
Taiwan's petroleum industry was a CPC monopoly prior to June 1996. However, deregulation allowed the establishment of privately owned and operated petroleum refinery enterprises, leading to Formosa Plastics Group's launch of Formosa Petrochemical Corporation (台塑石化). In February 2007, the company's board approved name change to "CPC Corporation Taiwan" and the Chinese name from 中國石油 to 台灣中油. This was to avoid confusion with PetroChina, the China state-run corporation which also has the Chinese name 中國石油, and was part of government efforts to desinicize Taiwanese entities which have "China" their names. However, the Kuomintang political party argued that the name change is not valid because no legislation was passed in the legislature to support it. KMT believes that the approval of the Legislative Yuan is required before a state-owned company can change its name.
In December 2018, production started at the Prelude floating liquefied natural gas facility in Australia, which is the world’s largest floating production structure. The company holds shares alongside investors Shell, Inpex Corporation, and Korea Gas Corporation.
In 2019 a Norwegian tanker named Front Altair carrying a cargo of naphtha for CPC Corporation, Taiwan was attacked in the Gulf of Oman. The entire NT$1.07b (US$34m) cargo was lost but the crew escaped unharmed and the cargo was insured. After insurance CPC Corporation, Taiwan incurred direct costs of NT$8m (US$254,000) associated with the incident. The cargo represented two days of Taiwanese consumption but had minimal impacts as the company had 45 day supply in reserve.
In 2019 CPC announced the construction of a third LNG terminal, a facility in Taoyuan expected to be completed by 2023 with an initial capacity of 1 million tonnes per year (tpy).
CPC Corporation, Taiwan was a historic buyer of Iranian oil and received a sanctions waiver from the United States when they imposed sanctions on Iranian oil imports. Despite receiving a sanctions waver CPC Corporation, Taiwan chose to end its use of Iran as a source country.
- Central News Agency - Republic of China (Taiwan) (10 February 2007), Name Change Of CPC To Take Effect Immediately: Economics Minister, archived from the original on 28 September 2007, retrieved 10 February 2007
- Shan, Shelley; Lin, Jackie; Chuang, Jimmy; Shih, Hsiu-chuan (13 February 2007), "Postal service, oil refiner change names", Taipei Times
- "World's largest floating LNG platform starts production in Australia". Reuters. 26 December 2018. Retrieved 16 May 2019.
- "Prelude starts production". www.shell.com.au. Retrieved 16 May 2019.
- Strong, Matthew. "CPC Taiwan estimates losses from Sea of Oman tanker at NT$8 million". www.taiwannews.com.tw. Taiwan News. Retrieved 23 June 2019.
- Cheong, Wendy. "Taiwan's CPC says it has sufficient naphtha, gasoline stocks after tanker fire". /www.spglobal.com. S&P Global. Retrieved 23 June 2019.
- Tan, Florence. "Taiwan's CPC to start building third LNG terminal by mid-2019". www.reuters.com. Reuters. Retrieved 23 June 2019.
- Writers, Staff. "Taiwan Business Quick Take". www.taipeitimes.com. Taipei Times. Retrieved 22 July 2019.
- Morgan, Scott. "Taiwan waived from US ban on Iranian oil". www.taiwannews.com.tw. Taiwan News. Retrieved 23 June 2019.
- Deaeth, Duncan. "Despite sanctions waiver from US, Taiwan's CPC Corp. ceases buying Iranian oil". www.taiwannews.com.tw. Taiwan News. Retrieved 23 June 2019.
- Julie Gordon and Henning Gloystein, Jess Macy Yu. "Cheniere signs 25-year LNG sales deal with Taiwan's CPC". www.reuters.com. Reuters. Retrieved 23 June 2019.