Taipower seeking LNG supply for Hsieh-Ho terminal

Taipower seeking LNG supply for Hsieh-Ho terminal

Taiwan Power Company is seeking interested bidders for the supply of 1.8 million tons of liquefied natural gas (LNG) per year on a delivered ex-ship (DES) basis starting from 2025. 

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In its request for expression of interest, the state-owned Taipower, is seeking for the supply of the said volumes over ten to 20 years.

The company issued its call following the government’s approval of the Hsieh-Ho LNG import terminal in the north of the country, next to the Hsieh-Ho power plant.

A floating storage and regasification unit (FSRU) with a 170,000 cubic meters capacity to be deployed at the project will be supplied by the selected LNG supplier over a period from 2025 to 2032, to deliver the natural gas to the power generation facilities.

The import facility is planned to come online in 2032 and will include two 160,000-cbm storage tanks, capable of accommodating 170,000 -cbm LNG carriers, the document shows.

Once that period is over, LNG will be delivered to the Hsieh-Ho terminal before it is delivered to the power generation facilities.

Proposals are set to be delivered by December 31, with a shortlist to be launched together with a request for proposals by the end of the first quarter of 2019.

At the end of 2017, the company launched a similar procedure for the delivery of 1.8 to 2.4 million tons of LNG per year to its planned Taichung import terminal, over a 15-year period. A request for proposals for this, the first tranche of supply is expected by the end of third quarter of 2018, with contract talks to start in the quarter after.

The second tranche of LNG supply would be used at two Hsieh-Ho power production units that are expected to consume about 0.9 mt of LNG per year. The units 1 and two are scheduled for commissioning in 2025 and 2030, respectively. A commissioning cargo for the first unit is expected to be delivered by the FSRU in the fourth quarter of 2024, the document shows.