TAIPEI (Taiwan News) — Taipower and CPC Corp. have continued to strengthen and diversify their oil and gas imports to mitigate the impact of the Middle East conflict on Taiwan, CNA reported.
Taipower Chair Tseng Wen-sheng (曾文生) said geopolitical shifts and the ongoing conflict have pushed up crude oil and LNG prices. According to the Ministry of Economic Affairs, the government has also responded by securing long-term contracts and maintaining adequate domestic reserves.
The ministry noted that Taiwan imports oil and gas from more than 10 countries. Although the conflict temporarily blocked the Strait of Hormuz, Taiwan’s natural gas imports are not expected to be affected in the short term, Tseng said.
CPC has been reducing its reliance on crude oil from the Middle East. Imports from the region fell to around 35% last year, while shipments from the US rose to over 60%. Last year, LNG imports from the US accounted for about 10% of Taiwan’s total, and this share is projected to reach 25% by 2029.
Tseng added that LNG shipments scheduled to arrive in Taiwan before March 15 have set sail. He warned that if the conflict continues to intensify, up to six LNG shipments expected after March 15 could be affected.
Qatar Energy has halted LNG production following Iranian drone attacks on some of its facilities. Qatar is Taiwan’s key LNG supplier.
CPC said that in the short term, its suppliers are continuing to deliver shipments as scheduled. To maintain a stable power supply, the ministry has also placed coal-fired units at the Kaohsiung thermal power plant on standby, providing a combined backup capacity of around 13 GW.
Natural gas prices remain a key factor driving electricity costs, Tseng said, warning the recent rise in energy prices could fuel inflation. This month, the Ministry of Economic Affairs will hold a meeting to review CPC’s assessment of international fuel prices and consider whether electricity rates need to be increased.
CPC added that it will cooperate with the government to reduce the impact of rising international fuel prices on Taiwan. The move is part of the government’s price-stabilization policy.
