TAIPEI (Taiwan News) — Taiwan will increase US liquefied natural gas imports from June as the government moves to secure energy supplies after disrupted Middle Eastern shipments, Premier Cho Jung-tai (卓榮泰) said Thursday.
The move came after the Cabinet reviewed contingency measures on Thursday in response to the Middle East conflict, per Tai Sounds. Officials said state-run CPC Corporation has secured sufficient LNG supplies for March and April while authorities seek alternative sources for May, per CNA.
Cabinet Spokesperson Michelle Lee (李慧芝) said the Ministry of Economic Affairs has instructed CPC to coordinate natural gas shipments and stabilize supply. The disruption follows Iran’s effective closure of the Strait of Hormuz, a key global transit route for oil and gas shipments.
Taiwan relies heavily on LNG for electricity generation after the closure of its last nuclear power plant last year. Thermal generation fueled by LNG now accounts for about half of the country’s power supply, per Nikkei Asia.
MOEA Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) explained that gas from the Middle East accounts for roughly 30% of Taiwan’s LNG supply. Authorities have responded by advancing deliveries, sourcing gas from other markets, and making spot purchases.
Chen said the 22 LNG shipments scheduled for March and April have already been secured, helping keep domestic supplies stable. Taiwan holds energy reserves above legal minimums, including at least 90 days of oil, 11 days of natural gas, and 30 days of coal.
He said Taipower will maintain generation schedules while strengthening plant maintenance and optimizing hydropower dispatch.
Electricity stability is critical for Taiwan’s economy, particularly its semiconductor industry. Chip production is energy-intensive, and uninterrupted power is essential for manufacturing output.
Separately, the Financial Supervisory Commission said it is monitoring financial markets amid tensions. The regulator has asked the Taiwan Stock Exchange and the Taipei Exchange to track market developments and formed a task force to assess risks.
Taiwan’s benchmark stock market fell 3.67% between March 2 and March 11, according to the commission, placing the decline in the middle range among major Asian markets.
Vice Premier Cheng Li-chun (鄭麗君) said the government has also introduced price-stabilization measures, including a special fuel price-smoothing mechanism and further reductions in fuel commodity taxes.
