VZCZCXYZ0007
RR RUEHWEB

DE RUEHIN #2973 2400847
ZNR UUUUU ZZH
R 280847Z AUG 06 ZDK
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 1852
INFO RUEHBJ/AMEMBASSY BEIJING 5592
RUEHUL/AMEMBASSY SEOUL 8053
RUEHKO/AMEMBASSY TOKYO 7978
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEHC/DEPT OF INTERIOR WASHDC

UNCLAS AIT TAIPEI 002973 
 
SIPDIS 
 
STATE PLEASE PASS TO AIT/W 
 
SIPDIS 
 
 
 
STATE FOR EAP/RSP/TC, 
INTERIOR PASS USGS W.J. WINTERS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EMIN ENRG TW
SUBJECT: RICH GAS HYDRATE FOUND OFF TAIWAN 
 
 
¶1. SUMMARY. Taiwan confirmed the discovery of rich reserves of gas 
hydrate deposits off its southwestern waters. The current technology 
for gas hydrate extraction is not yet fully developed, but the new 
energy source could meet domestic consumption of natural gas for 
more than 60 years. Experts from the U.S. are assisting Taiwan in 
surveying this resource. END SUMMARY 
 
¶2.  Taiwan's Ministry of Economic Affairs (MOEA) confirmed August 17 
that the seabed off Taiwan's southwestern waters contains rich 
reserves of natural gas hydrate. MOEA said the reserves, if properly 
extracted, could meet domestic consumption of natural gas for more 
than 60 years. 
 
¶3.  Taiwan's Central Geological Survey (CGS) reported the reserves 
are located between Kaohsiung and Hengchun in the southernmost tip 
of Taiwan and cover an area of about 10,000 square meters. CGS 
estimates the area contains 500 billion cubic meters of gas hydrate, 
with an estimated worth of NT$5 trillion (about US$153 billion). 
 
¶4.  With the current demand for natural gas ranging between 7 
billion and 8 billion cubic meters per year, the newly discovered 
gas hydrate reserves will be able to meet domestic needs for at 
least six decades, the officials said. CGS noted current extraction 
technology for gas hydrates is still at an immature state and so 
commercial production would only be possible in ten years. 
 
¶5.  State-owned China Petroleum Corporation (CPC) first detected 
signs of gas hydrate reserves in the area in the early 1990s. CGS 
then started exploration in the same area two and a half years ago. 
Last year, Taiwan conducted a Tow-cam survey cruise in the 
southwestern waters from September 30 to October 6 with the 
participation of researchers from the US Woods Hole Oceanography 
Institution, which helped confirm the existence of the resource. In 
March this year, experts from the US Geological Survey attended a 
Taipei gas hydrate workshop sponsored by Taiwan's CGS to review 
Taiwan's progress in investigating the resource. 
 
¶6.  CGS official Chen Song-chun said Taiwan has purchased the TowCam 
technology from the Woods Hole Oceanography Institution this year 
and will conduct another survey cruise in the gas hydrate field in 
October. Woods Hole researchers are expected to take part in the 
cruise in October, Chen said. 
 
¶7.  Taiwan officials noted possible collaboration with countries 
such as Japan and the U.S. for future development of the oceanic gas 
hydrate deposits. As Taiwan has scant natural resources and 98 
percent of its overall energy supply is imported, the discovery of 
the gas hydrate field may lessen that dependency in the future, CGS 
officials said. 
 
Young