Taiwan secures LNG supply assurances from a ‘major’ country

Taiwan has received assurances over LNG supplies from a major producing country, according to the island’s economy minister, as concerns grow over the impact of the Iran war on energy imports from the Middle East.

According to Reuters, Kung Ming-hsin said Taipei had been approached in the last two weeks by the energy minister of a leading LNG-producing nation. The unnamed minister had offered full support for Taiwan’s natural gas requirements. The minister indicated that any additional demand could be met upon request, demonstrating a willingness to ensure continuity of supply.

The development comes as Taiwan, a recognised key global semiconductor producer, seeks to reduce the risks to its own energy security as the war in Iran drags on. Prior to the conflict, roughly one-third of Taiwan’s total LNG imports were sourced from Qatar, but it is understood authorities in Taipei have since moved to secure alternative supplies for the coming months, including shipments from Australia and the United States.

Kung added that Taiwan’s longstanding relationships with crude oil and natural gas suppliers meant that adjusting shipment origins or procuring additional spot cargoes would not pose significant difficulties. He went on to say that another country had also indicated it could assist in coordinating access to strategic petroleum reserves if necessary, albeit without revealing which country he was referring to.

The outreach, he said, reflected a reservoir of international goodwill built through years of stable commercial engagement and trust. At the same briefing, the spokesperson for Taiwan’s state-owned refiner CPC, Angela Lin, said crude oil inventories were currently being maintained at pre-conflict levels and that petrochemical feedstock supplies remained stable overall.

In addition, CPC chairman Fang Jeng-zen said the company was taking steps to reduce Taiwan’s reliance on the Middle East. A new agreement with the US will provide 1.2mn tonnes of LNG annually, with scope for further increases, including potential future supplies from Alaska.