Chinese Petroleum Corporation
(CPC) is the No.1 enterprise in the Republic of China with 18,900
employees and a variety of functional units around the island. As
a state-run enterprise, our company is responsible for the
development and supply of petroleum and natural gas, and is the
core of Taiwan's petrochemical industry.
Following the Government's move toward privatization of state-owned enterprises and an open domestic petroleum market, CPC is now making provisions to meet the tough competition ahead and to achieve its scheduled privatization by 2001. Our vision of the future is to become a safer, cleanr, and internationally more competitive energy conglomerate in the next century.
Founding & Brief History
Funded 100% by
the Treasury , the Chinese
Petroleum Corporation (CPC) was founded in Shanghai on June 1,
1946. It moved to Taiwan in 1949 and has since headquartered in
Taipei. Being a state-owned enterprise under the Ministry of
Economic Affairs, CPC is entrusted with the active development
and supply of petroleum and natural gas, and has been made the
core of Taiwan's petrochemical industry since the sixties.
Presently, CPC's total capital stands at NT$130 billion and has a
work force of around 19,000 persons.
CPC sets up a variety of functional units around the island, namely, the Taiwan Petroleum Exploration Division, Kaohsiung Refinery, Talin Refinery, Linyuan Petrochemical Plant, Taoyuan Refinery, Taiwan Marketing & Transportation Division, Exploration & Production Research Institute, Refining & Manufacturing Research Institute, LNG Project & Construction Division, and Northern Project & Construction Division to carry out operations as indicated by their individual name. CPC also institutes liaison offices in Kuwait, Singapore, and Vietnam to perform specific tasks concerning crude oil procurement and overseas exploration ventures. In total, the company's turnover of 1998 reached NT$371 billion.
By unfailingly supplying domestic oil & gas demands for the past 50 some years and by establishing the country's integrated petrochemical industry, CPC has made great contributions to the economic boom of Taiwan. In addition, it has grown into the No. 1 enterprise in the country.
Although CPC still enjoys favorable market shares in Taiwan, its overwhelming superiority has been continually shrinking since the 'Fair Trading Law' took effect in Taiwan in February, 1996. In view that the first private naphtha cracker along with oil refining facilities of Taiwan is to begin operation in 1999, and that the government intends to open up domestic petroleum market further, CPC is currently busy making provisions for tough competitions ahead. On one hand, it is actively streamlining the organization and reducing production costs to whet competitive edge; on the other, it is undergoing a joint venture with domestic petrochemical downstreamers to build a new refinery in Taiwan, as well as strengthening its overseas investments to globalize and diversify its operations. Above all, CPC has endeavored to go public to achieve the company's scheduled privatization by 2001.
With the vision to become a safe, clean, and competitive international energy conglomerate in the 21st century, CPC is persisting to provide an efficient energy service to Taiwan people by all means.
2003-8-1 Asia Chemical Weekly
Woes hamper CPC privatisation
The privatisation of Chinese
Petroleum Corp (CPC) will be 'impossible' to achieve this year
because of politics and other problems, a source said.
A source from CPC said there is 'not enough time' to sort out all the problems, including labour concerns about job security.
The Taiwan government, which owns 100% of CPC, wants to sell more than 50% of its stake. It is expected to maintain a 34% stake in the company after it is privatised.
CPC plans to offer 24.19-44.69% of the company to overseas and local investors and up to 24% to employees. Another 10% will be offered to public investors through an initial public offering.
The company was originally scheduled to be sold in 2001, but an inability to reach an agreement with employees meant the move had to be delayed. Then last August, the Ministry of Economic Affairs (MoEA) said it was aiming for privatisation to be completed by end-2003.
CPC's privatisation is a 'complicated issue' that will need plenty of time to resolve, a source from China Petrochemical Development Corp (CPDC) said. 'It is complicated because it is not just about economics.'
'Yes,' he noted, 'there is the labour issue workers worry about whether they will get to keep their jobs. So there are talks with the unions about various labour issues. But a bigger problem is politics. CPC is a state-owned company, and any move to privatise it must go through the legislative Yuan. The members of the Yuan have different opinions about the privatisation of CPC, and they are unlikely to come to any agreement soon.'
He said it was not possible to say when CPC would be privatised, given the complexity of the matter. Parliamentary approval for the sale of a majority stake in the company was granted in January this year.
CPC had a monopoly of Taiwan's domestic petroleum and cracker markets until 2000, when Formosa Plastics Corp started up the island's first private refinery-to-petrochemicals complex. After the government opened the markets to foreign competition in December 2001, the MoEA saw privatisation as a way to make CPC more competitive.
2003/3/18 Financial Times
China American Petrochemical to start trial run of new PTA plant run
China American Petrochemical Co., Ltd. (CAPCO), a local PTA (purified terephthalic acid) producer, will start trial run of a new PTA plant at the end of this month. CAPCO has completed the new PTA plant in the Taichung Harbor area located in Taichung County, central Taiwan. The new plant has an annual production capacity of 700,000 metric tons, larger than the 450,000 metric tons for most of the newly established PTA plants around the world, CAPCO indicated. The commercial operation of the new PTA plant is scheduled for late May this year
The new plant has the largest production capacity among all individual PTA plants in the world, CAPCO pointed out. If the commercial operation goes smoothly, the plant's production cost per metric ton of PTA will be lower by US$10-20 than competitors', CAPCO emphasized. The new plant's manufacturing process is introduced from BP-Amoco, a large shareholder of CAPCO. CAPCO currently yields 1.20 million metric tons of PTA a year, mostly for domestic supply. With the addition of the new plant, the company will become the largest PTA producer in Taiwan and increase its annual export volume from about 100,000 metric tons presently to 700,000 metric tons of which a large portion will be shipped to mainland China
On the other hand, CAPCO suffers from continued hikes in the procurement cost of PX (para-xylene), the key material of PTA. Mainly due to short supply, the contract price of PX for next month was adjusted up to US$850-870 per metric ton. Despite the price hike, CAPCO will have steadily sufficient supply of PX by BP-Amoco.
CAPCO's Sixth PTA Plant
Chinese American Petrochemical Company (CAPCO) is again proceeding with plans to build a sixth pure terephthalic acid (PTA) plant in southern Taiwan. CAPCO is a Taiwan-U.S. joint venture formed in 1976. U.S. partner Amoco holds a 50 percent stake in the project with Chinese Petroleum Corp. and the Central Investment Holding Company splitting the remaining half.
CAPCO produces over 50 percent of Taiwan's PTA, a key material in making polyester staple, manufacturing over 1.35 million metric tons annually. The proposed plant, with an annual production of 450,000 metric tons, would boost CAPCO's yearly production to nearly 1.8 million metric tons. U.S. suppliers of computerized control systems, compressors, instrumentation and pollution control systems will find equipment sales opportunities for this project.
Taiwan CPC to scrap, replace No 3 petrochemical complex by 2010
Taiwan's state-owned Chinese Petroleum Corp plans to scrap and replace the smallest of its three naphtha crackers in Lin Yuan by 2010, a source close to the firm said Friday. The new cracker would have the capacity to produce 1-mil mt/yr of ethylene; 500,000 mt/yr of propylene and 140,000 mt/yr of butadiene.
It would be linked to a reformate-based aromatics complex which will produce benzene, toluene and mixed xylene, he added.
中国石油はサウジアラビアとカタールを中心に、積極的に中東地区への投資を行っているが、液化天然ガス（ＬＮＧ）の埋蔵量が豊富で価格も低いことがその背景にあるようだ。カタールでは、1996年に20％出資の合弁会社、カタール燃料添加剤（ＱＡＦＡＣ）を設立した。カタール政府が50％、李長栄化学工業とカナダのインターナショナル・オクタン・リミテッド（ＩＯＬ）がそれぞれ15％ずつ出資しており、メチルアルコールの年産量80万トンを誇る。 (正しくは832,500トンのメタノールと 610,000トンの MTBEを生産） ３日付経済日報が伝えた。
Jan 06, 2007 Taipei Times
Petrochemical may head to Middle East
The state-controlled venture is thinking of moving its next project overseas given that its Yunlin plant has been struggling to get off the ground
Kuokuang Petrochemical Technology Co (國光石化科技), a venture led by Taiwan's state oil company, may shift a planned NT$401 billion (US$12 billion) chemical project to the Middle East because of opposition at home from conservationists and fishermen.
Failure to obtain government clearance or acquire land may force a move from the preferred site in Yunlin County雲林, company president Roy Chiu (邱吉雄) said.
Kuokuang, 43 percent owned by Chinese Petroleum Corp (CPC, 中油), may add to investments of as much as US$5 billion planned with partners in the Middle East, he said.
"That'll be our last choice" because it "won't contribute anything to Taiwan's gross domestic product," Chiu said in Taipei on Dec. 28. "We're considering Saudi Arabia, Oman and Abu Dhabi."
Giving up Yunlin would be Chinese Petroleum's second failure to build an ethylene plant in Taiwan this decade. The company needs to make up for lost capacity from a facility in Kaohsiung scheduled to close down by 2015 because of complaints from residents over pollution.
Investment in the Middle East would help Taiwan build political ties in the region. None of the 24 nations that maintains formal ties with President Chen Shui-bian's (陳水扁) government are from that region.
"If they build it in the Middle East, it would be for diplomatic considerations," said Jeffrey Bor (柏雲昌), an economist at the Chung-hua Institution for Economic Research (中經院) in Taipei.
A plant in the region would mean getting feedstock for the company would be easier, said Wang To-far (王塗發), a member of the legislative Economics and Energy Committee.
Taiwan imports almost all its crude oil and more than 90 percent of its natural gas.
If completed as planned in 2015, the Yunlin plant would boost Taiwan's economic output by 0.9 percent, Chiu said.
The Yunlin project hasn't passed the government's environmental impact assessment because of speculation it will increase emissions of greenhouse gases, Chiu said. Kuokuang also needs to negotiate with 850 fishing families to leave the planned site, he said.
"I oppose building the plant in Taiwan," Wang said. "Taiwan's greenhouse gas emissions are already very high."
Taiwan ranks third in the world -- behind the US and Australia -- in per capita greenhouse gas emissions, Wang said.
CPC is counting on the project in Yunlin to compete with Formosa Plastics Group (台塑集團), which has newer refining units and petrochemical plants.
The state-controlled firm's 2005 profit was 15 percent of that of smaller rival Formosa Petrochemical Corp (台塑石化), whose share price gained 27 percent last year to NT$71.60.
CPC and Formosa Petrochemical are Taiwan's only oil refiners. They also have units that process naphtha into petrochemicals including ethylene, a raw material used in making plastics. Naphtha is distilled from crude oil.
CPC originally planned to start on its own in 2004 on the Yunlin project, with a 300,000 barrel-a-day crude oil refinery and an ethylene plant with an annual capacity of 1.2 million tonnes, Chiu said.
The refiner later invited local companies, including Oriental Union Chemical Corp (東聯化學) and Fubon Financial Holding Co (富邦金控), to join the project. The partners set up Kuokuang in January last year to carry out the plan, according to CPC's Web site.
Relocating the project to the Middle East may mean lower costs for land acquisition and quicker completion, Chiu said.
Kuokuang plans to pay fishermen on the Yunlin site NT$10 billion and spend an additional NT$100 billion in reclaiming land, while preparing the ground will take about four years, he said.
Apr 18, 2006 BLOOMBERG
CPC closes its oldest distillation unit
Chinese Petroleum Corp (CPC, 中油), the nation's biggest fuel supplier, said it closed its oldest crude distillation unit in Kaohsiung permanently because of local residents' concerns over pollution, reducing the company's refining capacity by 6.5 percent.
The oil refiner shut the 50,000-barrel-a-day unit late last year, Hwang Jung-shong, general manager at the company's Kaohsiung refinery said in an interview in Kaohsiung on Sunday.
The company may close the refinery and chemical plants on the site by 2015.
Decommissioning of the distillation unit limits the state-run refinery's ability to export fuels.
The company is developing a NT$401 billion (US$12.3 billion) project through its 43 percent-owned venture Kuokuang Petrochemical Technology Co (國光石化), to make up for the lost capacity from Kaohsiung.
"We're closing the plants because we're forced to," Tsao Mihn, vice president of CPC, told reporters in Kaohsiung on Sunday.
Taipei-based CPC agreed in 1990 to close the Kaohsiung plants by 2015 in exchange for local residents' consent for a new ethylene plant to be built on the site.
Including the closed distillation unit, the facilities can process 270,000 barrels of crude oil a day and make 500,000 tonnes of ethylene a year, equivalent of 35 percent of the company's refining and 45 percent of its ethylene capacity.