State-owned oil refiner CPC Corp, Taiwan (CPC) has proposed a four-year capital increase plan to improve its financial standing after accumulating losses of NT$62.7 billion (US$1.96 billion) by the end of October—equivalent to about 48% of its NT$130.1 billion paid-in capital.
CPC’s new chairman, Fang Jeng-zen, announced the plan during his inauguration ceremony in Taipei, stating that NT$350 billion would be raised over four years, subject to approval by the Ministry of Economic Affairs.
CPC, a leading oil supplier and gas importer, plays a strategic role in the government’s energy transition, which aims to increase natural gas usage for power generation and develop alternative energy sources, such as geothermal and hydrogen, to achieve net zero emissions.
Photo Caption: Newly appointed CPC chairman Fang Jeng-zen (left) and president Michael Chang (right) hold the official seal alongside Vice Minister of Economic Affairs Lien Ching-chang during the inauguration ceremony in Taipei. (Photo: CNA)
The company has reported significant financial strain from absorbing international oil and gas price hikes to shield consumers from higher prices. This policy has resulted in CPC absorbing NT$400 billion from 2021 to 2023, with an additional NT$22.39 billion spent in the first nine months of this year.
Fang expressed that CPC would seek government support to more accurately reflect oil and gas costs in retail prices. He also called for subsidies or approval for increased capital to bolster the company’s financial health.
To meet growing natural gas demand from Taiwan Power Co (Taipower), industrial users, and households in northern Taiwan, CPC is constructing its third liquefied natural gas (LNG) terminal in Taoyuan’s Guantang Industrial Park. The first phase is expected to be operational by March next year, supplying Taipower’s Datan Power Plant. The full project is slated for completion by 2029.
Additionally, CPC is planning a new LNG terminal in Kaohsiung’s Siaogang District, with a second environmental impact assessment review scheduled for later this year. Existing terminals at the Port of Yungan in Kaohsiung and the Port of Taichung will also be expanded to secure gas supply.
Last month, the Executive Yuan appointed Fang as chairman, succeeding Lee Shun-chin. Michael Chang, previously vice president, was promoted to president.
At the inauguration at CPC’s Taipei headquarters, Vice Minister of Economic Affairs Lien Ching-chang outlined three major priorities for the new leadership: carbon reduction, promoting artificial intelligence, and advancing green energy. The government anticipates that Fang and Chang will lead a corporate transformation at CPC, Lien said.– TAIPEI TIMES
