Since 1970, because economy was developed fast, the need of petroleum in the northern part of Taiwan increased sharply and the fuel for aviation and generating electricity became insufficient. If things went on like this, it would still be insufficient to deliver petroleum from the southern part of Taiwan. Therefore, the company decided to build Taoyuan Oil Refinery. The location was in the middle of four cities: Gui-Shan, Taoyuan, Lin-Kou, and Lu-Zhu, near Nan-Kan Interchange of Chung-Shan Freeway. In order to deal with the oil warehousing and transportation need, the company built floats, the pipeline of sea floor, large-scale oil tank and the pipeline by land, etc. in Sha-lun. and the distillation factory that smelted 100,000 barrels of crude oil and relevant factories were installed and finished in succession in 1977. In order to deal with the oil warehousing and transportation need, the company built floats, the pipeline of sea floor, large-scale oil tank and the pipeline by land, etc. in Sha-lun. and the distillation factory that smelted 100,000 barrels of crude oil and relevant factories were installed and finished in succession in 1977.

After Taoyuan Oil Refinery was built, it fully supplied the military and civil need for petroleum and had great contribution to the national defence and economy.