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CPC Corporation, Taiwan (CPC) is the foremost energy enterprise in the Republic of China.

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Global Operations

Home > Global Operations > Downstream Operations

Downstream Operations

Maintaining a steady supply to the market - and expanding it through innovative diversity 


Importing & refining


CPC procures its crude oil through long-term contracts, with a diversity of sources to ensure stability in supply. Imports in 2015 totaled 129.97 million barrels, of which 71.91% came from the Middle East, 21.37% from Africa, 1.37% from Southeast Asia, 0.43% from Australia, and 4.92% from other regions.  Low-sulfur crude accounted for a significant proportion of those imports, in line with increasingly stringent domestic standards for environmental protection.

Given the importance of efficient loading and unloading of both crude oil and refined products, CPC has invested in state-of-the-art handling facilities in the form of offshore mooring and unloading buoys for large tankers, plus supporting onshore equipment at both the Shalung terminal in Taoyuan County and the Dalinpu terminal in Kaohsiung. There are also dedicated tanker wharves at Kaohsiung, Taichung, Keelung, and Shenao harbors.


Refining on a scale consistent with domestic demand

CPC's three refineries at Kaohsiung, Taoyuan, and Dalin had a combined daily refining capacity of 720,000 barrels, but the Kaohsiung complex – the one with the longest history of the three and at its peak an integrated refining and petrochemical plant handling 220,000 barrels a day - was shut down by end-2015. Its operations are being gradually transferred to the Dalin Refinery, which is undergoing capacity expansion to meet domestic demand for refined products. That plant's daily capacity is 300,000 barrels, with both incoming crude and outgoing refined products handled by four offshore mooring and unloading buoys and dedicated port works.

The Taoyuan Refinery started up in 1976 and following renovations and the addition of a second distillation plant now has a daily refining capacity of 200,000 barrels. CPC's total output of petroleum products in 2015 amounted to, in million kiloliters:  gasoline 9,835; aviation fuel 1,901; diesel 5,599; fuel oil 4,832; and of liquefied petroleum gas (LPG) 341,925 metric tons.



Refining technologies upgraded to enhance quality and quantity

In response to Taiwan's increasingly demanding environmental and quality of life standards, coupled with the need to produce a wider range of petroleum products, CPC has in recent years moved to both improve the quality of its products and enhance their production value. Refining and production facilities have had design and process upgrades to enable supplying Taiwan's domestic market with higher-grade products, such as desulfurized gasoline and diesel. At the same time, these upgrades have raised the level of production efficiency across the whole range of refining processes.

Additionally, CPC operates facilities enabling compliance with the Environmental Protection Administration's 2011 directive stating the parameters for the sulfur and aromatics content of gasoline and diesel fuel. These plants consist of a 30,000-barrel-per-day cracked gasoline hydrodesulfurization plant at the Taoyuan Refinery, completed in 2008; a 20,000-barrel-per-day cracked gasoline hydrodesulfurization plant at the Dalin Refinery, completed in 2009; and a similar 40,000-barrel-per-day plant for diesel at the Dalin Refinery, completed in 2010. Additionally the 18,000-barrel-per-day cracked gasoline quality improvement plant was moved from the Kaohsiung Refinery to the Dalin Refinery in 2011.


Additional facilities at the Dalin Refinery include an 80,000-barrel-per-day residue fluid catalytic cracking (RFCC) facility, which began mass production in 2013. At that same location, construction of a 14,000-barrel-per-day alkylation plant able to take advantage of the plentiful supply of crude butane feedstock from the refinery's heavy fuel oil conversion facility began in 2008; this plant, designed to boost gasoline quality, began mass production in 2013. In order to eliminate acidic process fumes and reduce emissions, CPC constructed a new sulfur plant with a daily output of 250 tons that began  producing high-grade sulfur in mid-2014. To meet the increased need for low-sulfur fuel oil feedstock following commissioning of the heavy fuel oil conversion facility at Dalin, CPC is planning to revamp the No.3 residue hydrodesulfurization (RDS) plant, with investment slated for March 2017.

Due to the aforementioned closure of the Kaohsiung Refinery, CPC is installing additional process plant at its Dalin site to ensure an uninterrupted supply of raw materials to Taiwan's petrochemical industry. Current plans call for the construction of an ambient-pressure petroleum distillation facility with a daily refining capacity of 150,000 barrels, a 50,000-barrel light crude distillation facility, and hydrodesulfurization plants for both diesel (40,000 barrels) and kerosene (30,000 barrels) - all of which are expected to be completed by June 2017.


To boost the value of mixed C4 hydrocarbons produced by the heavy fuel oil conversion plant used for manufacturing high-value petrochemical products, CPC is involved in a joint-venture to build and operate an 180,000-ton-per-year isononanol (INA) plant and a 144,000-ton-per-year methyl tert-butyl ether (MTBE) facility; the project is now in the planning stage (until mid-2017) and production should start in or by 2019.

While CPC is mainly focused on supplying its domestic market for petroleum products, it does export any surplus: in 2015 approximately 2.798 million kiloliters of its major products went to Vietnam, Singapore, Indonesia, Malaysia, the Philippines, the UAE, and China. The company plans to further develop export markets in order to boost profitability.



Petrochemical Production

CPC’s main petrochemical production sites include the Taoyuan, and Dalin refineries under its Refining Business Division, as well as the Linyuan Petrochemical Plant under the Petrochemical Business Division.


The heavy fuel oil conversion plants at Taoyuan and Dalin produce propylene; the Linyuan plant's naphtha cracker and butadiene extraction plants produce ethylene, propylene, and butadiene products, while its aromatic extraction, xylene separation, transalkylation, and isomerization plants produce benzene and xylene products. CPC's current annual production capacity for petrochemical raw materials include 1.07 million tons of ethylene, 1.254 million tons of propylene, 157,000 tons of butadiene, 496,000 tons of benzene, 210,000 tons of p-xylene, and 50,000 tons of o-xylene.



CPC is a petrochemical industry pioneer dedicated to product innovation

CPC's long-term investment in petrochemical upstream operations has helped stimulate the industry's development and sustain Taiwan's economic miracle.  The renovated and expanded Third Naphtha Cracker at its Linyuan plant now annually produces 720,000 tons of ethylene, 430,000 tons of propylene, and 100,000 tons of butadiene. In addition to supplying downstream manufacturers in the adjacent industrial park, the Linyuan plant also provides petrochemical materials to companies in the Renda Industrial Area that were previously supplied by the Fifth Naphtha Cracker Plant. The Linyuan plant generates about NT$60 billion in annual revenue and its success encourages downstream companies to invest and bring profitability in the industry to a new level. Looking ahead, CPC plans to employ new processes, low-energy consumption technologies and economies of scale to provide the downstream petrochemical industry with adequacy in raw materials such as ethylene and propylene.

Petrochemicals are essential raw materials in manufacturing and closely linked to almost every aspect of people’s daily lives. In the context of a deregulated and increasingly competitive market, CPC actively supports government policies for enhancing quality and expanding the volume of petrochemicals exports through proactive measures such as creating an integrated up-, mid- and downstream petrochemical industry supply chain, boosting product innovation and expanding production of high-value niche products as evidence of its dedication to increasing the value of Taiwan’s petrochemical industry.



Total Annual Revenue from Petrochemical Products NT$92.931 billion


CPC leads in Taiwan's market for petroleum products

CPC's domestic marketing focuses mainly on gasoline, aviation fuel, diesel and fuel oil. In 2015 it sold a total of 20,246 thousand kiloliters of these products in Taiwan, generating sales revenue of approximately NT$367.9 billion - a significant decrease compared with 2014, due to lower prices at the pump. Automotive gasoline accounted for the largest share at approximately 48.8%, followed by diesel at about 23.7%, fuel oil at about 19.3% and aviation fuel at around 8.2%.

Taiwan's market for petroleum products is divided chiefly between CPC and Formosa Petrochemical, and competition between them has grown increasingly intense. CPC has worked hard to leverage the advantage of its marketing network and protect its market share by consolidating its filling-station network: of the 2,500 filling stations operating in Taiwan at the end of 2015, 612 were directly operated by CPC, six were jointly operated by CPC and other parties, and 1,360 were privately-owned franchises These 1,978 sites give CPC more than 70% of the overall market share, broken down as gasoline, aviation fuel, diesel and fuel oil sales accounting for 79.9%, 59.9%, 82.8%, and 94.3% respectively.



Driving Taiwan’s economy: CPC fuels movement by air, land and sea

CPC operates aviation fueling stations at all of Taiwan's airports - Sungshan, Taoyuan, Taichung, Hualien, Taitung, Kaohsiung, Kinmen, Magong and Matsu.  Around the coast, there are its international marine bunkering stations at Keelung, Su-ao, Taichung, Kaohsiung and Hualien harbors, as well as 35 fishing-boat filling stations.

As of end-2015, CPC operated 14 petroleum product distribution centers located at Keelung, Shimen, Hsinchu, Taichung, Taichung Harbor, Wangtian, Minxiong, Tainan, Fengde, Qiaotou, Suao, Hualien, Magong, Kinmen and Matsu (part of the oil supply center), and they supplied filling stations in their surrounding areas with a total 22,421 kiloliters of product in the course of the year. There are three chemical analysis centers in Keelung, Taichung, and Kaohsiung, plus seven testing laboratories, charged with testing the products for quality control and altogether they handled 30,963 samples during the year.



22,421,000 kiloliters was CPC's output of petroleum products in 2015


Enhancing the consumer experience through service diversity

Maintaining market leadership requires enhancing customer satisfaction, so CPC has set as the keynote of its filling station operations a standard of service that differentiates them from competitors. This means that all directly-operated filling stations throughout Taiwan provide overall high-level service in terms of always keeping the toilets clean, employing customer experience management, actively promoting the VIP card system and applying customer relations management principles. Faced with the need to reduce operating costs and resolve the problem of manpower shortage, CPC has taken the lead in introducing self-service fueling using credit cards; and also requires all filling stations under its flag to increase revenue from outside their core areas by providing a diversity of services and strengthening horizontal alliances.

The variety of services provided by CPC gas stations includes car washing, quick maintenance, convenience stores and the sale of quality automotive products. In 2015, sales of CPC-brand intake valve cleaning fluid for motorcycles, cars, and diesel trucks reached 710,000 bottles, while sales of See Clean, an environmentally friendly laundry detergent, reached 590,000 units. Further, sales of CPC’s moon-cake gift boxes reached new records in both 2014 and 2015, with 108,000 boxes and 127,000 boxes sold respectively. The revenue generated from car washing and quick maintenance services also reached record highs in 2015 and the overall gross profit from multi-service gas stations exceeded NT$1.12 billion, a 7% increase compared to 2014. The constant growth in use of multi-service gas stations proves that they are now highly valued retail channels in the eyes of consumers.

In the area of customer service, the 0800-036-188 customer service hotline and the more recently added "1912" CPC service line have expanded the scope of our services and enabled a quicker response to customers' problems across the field.


Building a better environment: CPC gas stations go green

Within the global trend towards environmental protection there is now an emphasis on constructing buildings serving that cause. Variously termed 'ecology buildings' in Japan, 'eco-buildings' or 'sustainable buildings' in Europe or 'green buildings' in the USA and Taiwan, the aim is to build to protect ecological systems, encourage a mutually beneficial relationship between the structures and the environment, conserve energy and reduce both pollution and the overall environmental impact. These  design and build principles match CPC’s dedication to sustainability in its operations  and accordingly a program to green its gas stations began in 2013. As of April 2016, 9 sites have received green building certification: diamond-level for Badu Natural Gas Station, Guishan, Xinzhuangzi, Kenting and Fenggang; gold-level  for Guiren HSR Station; and bronze-level for Muzha, Luzhou (with a multi-service store) and Tingzhou Road. Constructing more green gas stations will be a top priority for CPC going forward; and pioneering such trends and concepts as green structures, green operations, universal designs, accessibility for  travelers, glocalization, cultural and creative industries and community prosperity will all be considered from an overall strategic perspective as CPC plans and constructs its network of gas stations for the new era – an approach that is emblematic of CPC’s commitment to operational sustainability and its industry-leading, forward-thinking vision.


Natural gas

CPC's promotion of natural gas as the fuel of the future, in keeping with Taiwan's policy aim of energy diversification, is based on its inherent advantages in terms of high thermal efficiency, low pollution profile and convenience in terms of safety and handling. A new era of clean energy was ushered in by completion of Taiwan's first LNG receiving terminal in Kaohsiung's Yongan District in 1990. Its  capacity was later boosted by an expansion project up to 4.5 million tons annually to cope with growing demand.

A third-stage expansion project to satisfy demand for natural gas from independent power producers as well as other end-users in northern Taiwan involved laying a 36-inch diameter, 238 km-long undersea gas pipeline from the Yongan plant to Tongxiao. Its completion expanded CPC's annual LNG handling capacity to 7.44 million tons.





A natural gas distribution network for modern needs and times

Taiwan's second LNG terminal, built close to Taichung harbor with an annual capacity of 3 million tons, became fully operational in 2009. It was designed to supply natural gas to Taiwan Power Company's Datan Power Station, industrial firms and household users in northern and central Taiwan. This project entailed building three 160,000-kiloliter LNG storage tanks, gasification and gas supply facilities and a 135-kilometer, 36-inch sea/land long distance transportation pipeline from Taichung Harbor through the Tongxiao distribution station to the Datan measuring station.  The current Taichung LNG Terminal Phase II Investment Project calls for the construction of three additional 160,000-kiloliter above-ground storage tanks and a gasification facility at the terminal itself, a 26-inch, 21.8 km terrestrial gas pipeline between the terminal and the Wuxi Separation Station, and a further switching station linked with the existing 26-inch pipeline at the Wuxi site. Once completed – which is expected to be before 2018 – the project will boost the annual capacity of the Taichung terminal to 5 million tons, ensuring a stable, dependable supply of gas during the winter monsoon period as well as the number of days' supply on hand.

CPC has constructed a natural gas transmission and distribution system in western Taiwan comprised of approximately 1,535 kilometers of terrestrial trunk pipeline extending from Pingtung in the south to Keelung in the north, which includes eight supply centers and 45 distribution stations. CPC's current plans and goal is the construction of interlocking ring-shaped networks to produce a figure-8 configuration, which will involve laying down a 238-kilometer undersea pipeline from Yongan to Tongxiao and a 500-kilometer terrestrial pipeline onwards from Yongan to Taoyuan, creating a circular network in central and southern Taiwan. In addition, after the 36-inch undersea gas pipeline from Taichung to Datan has come on stream, it will be linked with terrestrial pipelines in central and northern Taiwan to form another circular formation – thus completing the integrated "figure-8" gas transmission network.


In the context of Taiwan's new energy policy of gradually phasing out nuclear power and building a low-carbon environment running on green energy, Taipower is planning the addition of 4 natural gas generators to its Datan Power Plant. CPC is now planning construction of a third LNG receiving terminal in the Guantang Industrial Area in northern Taiwan to supply both the expanded needs of the Datan plant and the growing demand from residential, industrial and other energy users in northern Taiwan. Apart from the LNG plant itself, the project will involve construction of an industrial port with 10 piers, reclaiming 77 hectares of land and building facilities for importing 3 million tons of LNG each year. The new works will include four 160,000-kiloleter LNG storage tanks as well as vaporization and distribution plant that will be connected to the existing natural gas distribution system. The total investment will amount to some NT$60.08 billion.

The third LNG receiving terminal project will formally commence in 2016, with full operation scheduled by 2023. Its capacity may later be expanded up to 6 million tons of LNG annually to meet higher demand. With three LNG receiving terminals located in the north, center and south of the island, CPC stands to reap economies of scale that will lower both the costs and risks of importing gas in the future. The existing figure-8 undersea and terrestrial pipeline system will enable mutual support in transporting gas around Taiwan and raise the level of safety and stability.





Stabilizing Taiwan's natural gas supply: diverse sources, long-term contracts

CPC has put a lot of effort into diversifying its natural gas sources to ensure that Taiwan has a stable supply. Concluding sale & purchase agreements that will help in meeting the market's needs, in addition to the existing long-term LNG purchasing contracts with Indonesia, Malaysia, and Qatar, CPC’s current main suppliers, will continue to be an important objective.

Papua New Guinea began supplying LNG to Taiwan on schedule in 2014 under a long-term agreement, and during that year CPC also signed a contract with the Cameron project in the U.S. that calls for LNG shipments over a 20-year period starting in 2018. Additionally, CPC will gradually move towards obtaining more gas from Australia, Africa, and the United States to further diversify its sources.

Apart from the gas coming from its main suppliers under long-term purchasing contracts, additional supplies have been acquired through master sales agreements with other natural gas exporters.


Total domestic sales of natural gas in 2015:

18.9 billion cubic meters



Other Products

Understanding the market for LPG and optimizing distribution

CPC’s monopoly in the LPG market was broken when the government opened it up to competition in 1999. Formosa Petrochemical Corp. entered as a producer and independent traders began importing supplies.

As both a state-owned enterprise and one of the market's main suppliers, CPC is charged with  maximizing its operating performance while at the same time ensuring sufficiency of supply to the domestic market.

With household gas, CPC’s LPG Business Division is able to consolidate its market share by making full use of its quality advantage and also fully utilizing its north-south transport and storage systems and its comprehensive marketing network. In the area of industrial gas, the Company works at strengthening its customer service so as to retain existing customers and develop new ones.

In response to increasing market competition in Taiwan the LPG Business Division is planning to develop and expand international trading and create more overseas sales channels.  It stays abreast of  price movements in the international LPG market so that it can choose the best timing for import/export and both lower the costs of procurement and expand export volume, thereby maximizing profit, c complying with the government’s safety reserve policy and quickening the rate of turnover in storage tanks.

In its engagement with the LPG market, CPC endeavors to strengthen both occupational safety and environmental protection while also being a good corporate citizen and fulfilling its CSR commitment.




Solvents & Chemicals

Eco-biotechnology R&D; Sales Innovation & Integration

CPC holds a dominant market share position in Taiwan: 75%-85% in solvents, 25%-35% in toluene, 35%-45% in xylene, 55%-65% in methanol, roughly 60%-65% in asphalt, and around 47% in sulfur.

CPC's Solvents & Chemicals Business Division aims to achieve its operating objectives by taking a vigorous approach to efficient customer service, systematically expanding exports to promising markets such as Vietnam and China, enhancing product quality and image, process improvement, cost-cutting and providing innovative products and services. In addition, the Division is making extensive efforts to market CPC's biotech products; its biotech R&D team is building on past successes with microbial fermentation technology by adopting modern biotechnology processes and an innovative integrated methodology, branching out into such areas as biotech raw materials and functional products for health and green biotech to develop reasonably-priced, high-quality products.



Dual branding and new overseas markets

CPC’s lubricant products are currently leaders in Taiwan's domestic market, with one-third of the total. Based on the management strategy of consolidating the domestic market and expanding overseas, CPC  aims to establish a comprehensive competitive business model in the Asia-Pacific region as a long-term goal. The Lubricants Business Division markets both 'CPC' and 'Mirage' brands in Taiwan and aims to develop customized products that respond to the ever-changing needs and preferences of consumers.

CPC has established a nation-wide distribution network for its lubricant products in order to provide customers with complete, convenient, and diversified distribution channels. In Taiwan, CPC’s products are available at some 30 contracted distributors, 600-plus CPC gas stations, chain-stores and hypermarkets. 'Mirage' brand products are available at automobile and motorcycle maintenance workshops.

For overseas expansion, the Division aims to take direct control of markets through long-term management of its brand and distribution channels - outsourcing its blending and processing to overseas factories, concluding multilateral trade deals, forming cross-industry alliances and boosting local product development. So far, the Division has established overseas distribution channels in China, the Philippines, Indonesia, Vietnam, Myanmar, India and The Gambia.   Possible other future moves include expanding overseas production, and investing in distribution infrastructure in Vietnam.