- Island's demand for cleaner fuel set to rise amid semiconductor production push
According to Nikkei Asia article published on March 28, 2023, Japan's JFE Engineering has won an order worth about 30 billion yen ($229 million) to construct a liquefied natural gas terminal in Taiwan, as the island seeks a stable supply of the cleaner power source amid increasing semiconductor production.
JFE Engineering will build the facility for Taiwan oil major CPC about a kilometer off the northwestern city of Taoyuan, a technology hub. The order encompasses equipment to remove LNG from transport ships, as well as pipelines and tanks, along with facilities to transport seawater to heat the ultra-cooled LNG and return it to a gaseous state.
Construction is expected to be completed by May 2025, with the terminal opening by the end of that year.
The coastal area near Taoyuan is known for strong winds topping 10 meters per second, making construction at sea difficult. JFE Engineering aims to prevent delays by building pipe platforms at a nearby port and bringing them to the site, limiting offshore work to welding and other simpler steps.
The company has a track record of LNG terminal construction in Japan. JFE Engineering used the method of building pipe platforms in advance for a terminal in Ehime prefecture in western Japan that was completed in 2021.
Taiwan is building new gas-fired power plants, looking to produce half the island's power from natural gas by 2025. The Japanese company hopes to win more construction orders there as demand for electricity -- and LNG -- is set to rise on the growth in semiconductor manufacturing.
