In recent years, advanced countries in the world have actively encouraged the use of natural gas in line with the Kyodo Protocol calling for reduced emission of CO2 to ward off the warm-house effect and protect the ozone layer. The government in Taiwan is also following suit, promoting the use of natural gas in office buildings, hospitals, gymnasiums and hotels for air conditioning and fueling to save consumption of electric power. It is also encouraging the development of steam/electricity co-generation.

In order to rationalize the natural gas price structure for users, the government will implement a new accounting system, under which users will be subject to a basic monthly charge plus the additional charge for their gas consumption.

The state-run Chinese Petroleum Corp. is now the major source for the supply of natural gas. The firm imports natural gas from a number of foreign countries such as Indonesia and Malaysia, in addition to a small portion of natural gas produced in Taiwan.