Losses Will Reach NT$180B with Price Freeze: CPC Corp. 天然氣若凍漲到年底 中油至少虧損1800億

Earlier this month, Taipower raised electricity prices to reflect international fuel costs. Recently, CPC Corporation also increased the price of natural gas by five percent for energy sector users. During an interview, CPC Corporation Chairperson Lee Shun-chin said that if prices remain frozen for civil and industrial users until the end of the year, then the company’s losses for this year could reach NT$200 billion.

Lee Shun-chin, Chairperson, CPC Corp.: “You're making up for it from the refinery side, but CPC Corporation is still losing money. We're suffering a huge financial loss.”

CPC Corporation's deficit continues to rise. According to Chairperson Lee Shun-chin, the loss for the first half of 2022 totaled NT$55.5 billion, pushing the total deficit to NT$84.3 billion. The loss for the entire year could reach NT$200 billion. To reflect fuel costs, CPC Corporation increased the natural gas price for energy sector users by five percent on July 1. This will help to reduce the deficit by NT$7.6 billion.

Lee Shun-chin, Chairperson, CPC Corporation: “Our deficit this year from natural gas has already reached NT$93.7 billion. Our cost is about NT$20.92 per Mcf. Right now, we're giving energy sector (users) a 20 percent discount and civil and industrial users a 60 percent discount.”

Lee said the price of natural gas has been frozen for a year and a half starting in December 2020 in consideration of people's welfare. Whether the price for civil and industrial users will be increased in the future will depend on commodity prices and international fuel prices. Scholars believe the international fuel price won't fall before the end of the year. Next year, after the elections, there could be the dreaded "double increase in gasoline and electricity prices."

Liang Chi-yuan, Chair Professor, School of Management, NCU: “Vehicles that use this fuel are banned after 2035, and the supply started decreasing in 2021, so there won't be a situation where supply exceeds demand. There may be a situation where supply doesn't meet demand. Under this circumstance, I think it's very hard to avoid a double increase in gasoline and electricity prices after the elections.”

A contract to import natural gas from Russia expired at the end of March and there is a 10 percent shortfall. CPC Corporation says it has switched to Qatar and the U.S. as new suppliers and the supply is not affected. It also says it is not considering replacing Russian natural gas with East Australian natural gas at the moment, but it may still get in contact with countries that buy natural gas from East Australia to explore the possibility of switching suppliers.









至於進口自俄羅斯天然氣,今年3月底到期,約10%缺口。中油表示,目前轉購卡達、美國新氣源來補足,不受影響。至於轉購東澳天然氣,替代俄羅斯天然氣的構想,中油表示,目前暫時無法購買, 但不排除先與東澳天然氣購買國接觸,尋求轉供可能性。


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