CPC's New Fourth Naphtha Cracker Project Progresses; Fang Jen-jen: Carbon Reduction Consensus Reached with Kaohsiung City Government

The Legislative Yuan's Economic Committee today invited Minister of Economic Affairs Kung Ming-hsin to report on "the assessment, response strategies, and current situation of issues such as increased market uncertainty due to escalating Middle East conflicts, leading to rising costs of petrochemical raw materials including ethylene, plastics, fertilizers, and asphalt, and frequent shortages and hoarding." He was also questioned on these matters.

Kuomintang Legislator Cheng Cheng-chien questioned that, according to data from the Petrochemical Industry Association, the gap between domestic petrochemical production capacity and actual output reached 35% in 2024, indicating overcapacity. However, CPC recently advanced the start of its fourth naphtha cracker due to a shortage of plastic bags, and the new fourth naphtha cracker project will also invest over NT$100 billion. Therefore, he focused on the progress of CPC's new fourth naphtha cracker project.

Fang Jen-jen, CPC's President, responded that the CPC new fourth naphtha cracker project has been approved by the Executive Yuan, but the prerequisite is to reach a carbon reduction consensus with the Kaohsiung City Government. CPC and the Kaohsiung City Government have reached a preliminary consensus, but the specific carbon reduction methods and effectiveness are still in the design phase and need to be confirmed after the environmental impact assessment is approved.

Fang Jen-jen further explained in an interview after the meeting that the CPC new fourth naphtha cracker project has reached a consensus on carbon reduction goals and directions at this stage. However, how to demonstrate the carbon reduction effects through specific designs still requires engineering design and data verification. After the relevant data is complete, a final confirmation will be made with the Kaohsiung City Government. Only after feasibility is confirmed will the project enter the bidding and construction phases.

Regarding the timeline, Fang Jen-jen pointed out that the basic design has completed the bidding process but has not yet been signed. After signing, the consulting company will begin design work. CPC Vice President Lin Ke-ju added that the overall project schedule is still affected by bidding conditions. Environmental impact and carbon reduction assessment work is currently underway, and it is hoped that relevant assessments can be completed by the end of this year as an important basis for subsequent promotion. (Edited by Pan Yi-ching) 1150409