TAIPEI (Taiwan News) — Minister of Economic Affairs Kung Ming-hsin (龔明鑫) on Monday downplayed concerns that the ongoing conflict in the Middle East could disrupt Taiwan’s natural gas supply, saying the short-term impact on the country’s energy supply is expected to be minimal.
Speaking to local media, Kung said Taiwan has already arranged 20 liquefied natural gas shipments for March and April, with negotiations underway for two additional carriers. He said the current arrangements should ensure a stable LNG supply for both months, per CNA.
Kung said adequate LNG supply means there will be no need to increase electricity generation from coal-fired power plants, adding that energy production is expected to proceed normally at least through April.
He also dismissed speculation about a potential gas shortage, noting that Taiwan’s LNG imports come from a diverse range of sources. About one-third of Taiwan’s LNG imports come from Qatar, while the remaining 60% to 70% come from other countries, which he described as a stable supply structure.
Addressing public concerns about possible disruptions to residential gas use, Kung said such worries were unfounded. Residential gas consumption accounts for less than 5% of Taiwan’s total gas use, making any impact on household services such as hot water “absolutely impossible,” he said.
Kung said that because LNG supply remains stable, a previously discussed contingency plan to increase coal-fired power generation in April is no longer necessary for now. The government will continue to monitor global supply and demand conditions for May and beyond, he said, adding that warmer weather and reduced global demand for gas could ease pressure on supplies.
Regarding potential price changes, Kung said LNG purchased on the spot market could be more expensive. However, if shipping schedules are adjusted in advance, prices can still be calculated based on existing contract terms.
He said no decision has been made on whether natural gas prices will be adjusted, adding that price stability remains the government’s primary consideration.
Kung also addressed the potential impact of global developments on Taiwan’s stock market. He said energy concerns and the Middle East conflict could lead to short-term market fluctuations, but the market will ultimately reflect underlying economic fundamentals.
“Taiwan’s fundamentals are very strong,” Kung said, citing strong export performance. He noted that exports rose nearly 70% in January, while export orders increased about 60%, adding that February growth is also expected to remain significant.
Kung said rising energy prices and the effects of conflict are global challenges, noting that markets in Japan and South Korea have recently experienced even larger declines.
On domestic fuel prices, Kung said the government will review oil prices on a weekly basis and take appropriate measures if needed. Taiwan’s pricing mechanism includes an oil price formula, a gradual adjustment system, and the principle of maintaining the lowest price among neighboring Asian countries.
However, he said the government may take additional factors into account during extraordinary circumstances such as war.
Kung added that fuel price adjustments will be balanced within the acceptable range for CPC Corp., Taiwan, with the primary goal of maintaining price stability. The government will also continue coordinating with the Cabinet on measures to stabilize fuel and overall prices.
