TAIPEI (Taiwan News) — The Ministry of Economic Affairs said Friday that Australia’s planned domestic gas reservation policy will not affect Taiwan’s existing liquefied natural gas (LNG) procurement contracts.
The ministry said Australia is a key LNG supplier for Taiwan, accounting for about 33% of imports last year, per CNA. It was responding to Australia’s plan to introduce a domestic gas reservation program starting July 1, 2027, following a recent gas market review.
Under the new policy, LNG exporters will be required to reserve a portion of gas for domestic use in Australia, per Reuters. However, the ministry said the Australian government has indicated that contracts signed before Dec. 22, will be respected.
The ministry said Taiwan maintains multiple safeguards for energy security, including strategic LNG storage, diversified import sources, and long-term procurement contracts. It added that any potential reduction in spot LNG supply from Australia could be offset through purchases from the US and other suppliers.
On broader energy security concerns, including tensions in the Middle East, the ministry said Taiwan has not experienced any electricity or fuel shortages since late February. It said current conditions demonstrate the resilience of the energy supply system.
The ministry added that LNG supply is expected to remain stable through August and September, and CPC has already planned for winter procurement to ensure an uninterrupted domestic gas supply.
