Eyeing on the possible domestic petrochemical feedstock shortage in light of the withdrawal of KuoKuang Petrochemical’s investment plan in Malaysia and the closure of CPC’s No.5 naphtha cracker, the Industrial Development Bureau of the Ministry of Economic Affairs has given the green light for Taiwanese petrochemical companies to set up upstream naphtha crackers in China as long as the Taiwanese company 1) holds at least 50% of the JV, 2) fills the feedstock gap in Taiwan and 3) sets up high-value adding petrochemical production plants in Taiwan (with proportional dollar amount invested). The most prominent investment plant on sight is the Gulei Peninsula investment plan proposed by the Pan-CPC group. The first phase of the project, estimated at ~US$5 bn, is likely to include an integrated refining (16 mta) and cracking facility (1.2 mta ethylene) along with downstream derivative production plants.