Taipei, Taiwan – July 29, 2025 — Dutch marine engineering giant Boskalis and Swiss pipelaying specialist Allseas have secured a landmark $1.4 billion contract to construct a major offshore natural gas pipeline for CPC Corporation Taiwan, the country’s state-owned oil and gas company.
The project, known as the YT2 pipeline, will run parallel to the existing YT1 line and connect the Yongan LNG terminal in southern Taiwan to the Tongxiao gas-fired power plant in the north. The offshore pipeline will span approximately 232 kilometers and will have a 36-inch diameter, making it one of the most significant subsea energy infrastructure projects in the region.
The consortium will undertake the full engineering, procurement, construction, and installation (EPCI) scope. Allseas is set to deploy one of its cutting-edge pipelay vessels for the offshore installation, including 34 infrastructure crossings and extensive pre-commissioning activities. Meanwhile, Boskalis will handle the trenching and backfilling operations, perform nearshore landfall works using advanced microtunneling techniques, and support dredging activities.
Construction is expected to commence in 2026 with completion targeted for 2028.
The project is a critical component of Taiwan’s ongoing efforts to strengthen its energy security and transition toward cleaner fuels. As the country phases down coal dependency, natural gas is playing a pivotal role in stabilizing electricity supply while supporting decarbonization goals.
Industry analysts say this deal underscores growing demand for deepwater engineering and marine logistics capabilities in the Asia-Pacific, especially as island nations invest in offshore infrastructure to enhance energy resilience.
This award is also a major win for the European contractors, as it demonstrates continued trust in their ability to deliver complex subsea infrastructure in politically sensitive and geotechnically challenging waters.
