Go TO Content
Natural Gas

Natural Gas


Natural gas, like petroleum, is a hydrocarbon resulting from the gradual transformation and metamorphic breakdown of ancient deposits of organic substances – the fossilized remains of once-living organisms. These typically lie within much-fractured rock formations some 3,000 - 4,000 meters underground.
The major component in natural gas is methane and this makes it flammable, achromatic, insipid, colorless and non-toxic. It is mostly comprised of one carbon atom only and is therefore regarded as low-carbon energy.
As energy sources go, natural gas is a relatively clean fossil fuel: when ignited, its carbon dioxide emission is only about half that of coal. Modern technology enables natural gas to be readily transported and become a widely used, clean source of energy.
How LNG is priced internationally and at home
Liquefied natural gas (LNG) pricing has traditionally been tightly linked with that of crude oil. In other words, the pricing of Taiwan’s imported LNG has been priced on a percentage of crude oil price like Japan Crude Cocktail (JCC), which is indexed against the average monthly price of crude oil imported into Japan, the well-known benchmark in Asia region.
CPC reviews changes in the cost of imported LNG monthly in accordance with the government-regulated gas pricing system for the domestic market: if the range of movement in the price of gas is within 3% for one month or less than 6% accumulated over the last three consecutive months, CPC is authorized to unilaterally announce the price adjustment and report it to the Ministry of Economic Affairs (MOEA) subsequently. If the range of adjustment exceeds that described, CPC must seek MOEA approval for the change before making it public.
Liquified natural Gas carrier