The Boskalis and Allseas consortium has secured a significant contract from CPC Corporation Taiwan for the construction of a new offshore natural gas pipeline from Yongan to Tongxiao, marking a major step in Taiwan's energy transition.

The €1.2bn (T$41.19bn) project aims to bolster gas supply capacity in northern Taiwan.

The consortium's assignment includes the design, construction, installation and pre-commissioning of the pipeline, referred to as YT2, which spans approximately 232km.

The pipeline will run parallel to the existing YT1, linking the Yongan liquefied natural gas (LNG) terminal to the Tongxiao transfer station.

The scope of work encompasses trenching, installation with 34 crossings, backfilling and two landfalls.

Boskalis will handle the landfalls, microtunnelling, trenching, backfilling and installation of rocks for the pipeline crossings.

Boskalis will utilise two sizeable hopper dredgers, a substantial backhoe dredger and a vessel designed for subsea rock placement for these operations.

Allseas is set to undertake the pipeline installation and pre-commissioning, which includes the pre-lay installation of concrete mattresses.

The collaboration with CPC Corporation Taiwan is expected to enhance the reliability and security of the region's natural gas supply.

The project's execution phase is due to begin in 2026, with completion scheduled for 2028.

In a separate development, CPC Corporation Taiwan entered an agreement with Woodside in July 2024 to provide LNG through a sale and purchase agreement.

Commencing in July 2024, Woodside began supplying around six million tonnes (mt) of LNG to Taiwan on a delivery basis.

The contract also includes an option to extend the arrangement for another decade, from 2034 to 2043, with around 8.4mt of LNG potentially being supplied, contingent upon certain conditions and the finalisation of terms for that time frame.