CPC may relocate Kaohsiung Refinery to Malaysia
CPC Corp., Taiwan, the state-owned oil company, may relocate its Kaohsiung Refinery to Malaysia. The 220,000 barrel per day Kaohsiung Refinery will close in 2015 based on an agreement with the local government. CPC President Chen Ming-huei said that a decision could be reached within two years. Among the factors being considered in the relocation are: the availability of water, electricity, manpower, transportation and tax incentives offered by the Malaysian government. CPC is the biggest supplier of oil products to the local market, exporting only 10% of its total output. “Being a state-run company, fulfilling domestic need is our priority. We can only export after we meet domestic needs,” Chen said. CPC is also Taiwan’s sole importer of liquefied natural gas. Taiwan’s annual LNG demand is expected to rise to 15 million metric tons by 2020, up from the current demand of 11million to 12 million tons. (August 8, 2011)