Finished Goods Transportation and Traffic Safety

Oil products transportation safety

The Company transports oil products via land and sea transport, in which land transport includesunderground long-distance pipelines and oil tankers. There were no leakage incidents due to transport in 2022.

Underground long-distance pipeline transportation

The Company's four 12" underground pipelines for long-distance transportation stretch 226 km along the west coast highway from the Mailiao Plant to the storage and shipping station at Taipei Harbor in Bali, New Taipei City, transporting unleaded gasoline, aviation fuel, and diesel.

Long-distance Pipeline Safety Management

To ensure that transportation through long-distance pipelines outside the premises is safe, we inspect the pipelines on a daily basis. In addition, we perform cathodic protection potential tests on a quarterly basis. To effectively protect the pipelines from corrosion-resultant leaks, we periodically commission professional service providers to do pipeline current mapping (PCM) or close interval potential survey (CIPS) for the testing of the integrity of the enveloping layer of underground pipelines, and use a smart pipeline inspection gauge (PIG) to inspect the thickness of pipelines. Meanwhile, we have set up surveillance systems at important facilities in addition to transportation and storage monitoring systems to ensure the safety of transportation operations.

Oil tanker transportation on land

There was 1 traffic accident in 2022. The land transportation company (Sixth Naphtha Cracker Forwarding) we have worked with for years has been involved in fewer traffic accidents compared with the average in Taiwan at 0.12 accidents per million kilometers. For statistical analysis of the average number of accidents in the past 4 years, please refer to: Appendix ESG performance data – Social

Implementation of Driving Safety Improvement Measures

To ensure traffic safety and lower the number of traffic accidents, we required our subordinate transportation company (Sixth Naphtha Cracker Forwarding) to make improvements in personnel training, equipment upgrade, in hopes of maintaining zero accidents and reducing the hazards and risks of drivers.

Maritime transportation

The Company commissioned Formosa Plastics Marine Corporation to transport oil products, and requires the company to have a complete system from prevention to disaster mitigation and be able to utilize administrative support and disaster prevention, so as to ensure shipping safety and prevent pollution caused by leakage.