Taiwan shuts down final nuclear reactor, pivots to LNG

Taiwan is looking to ramp up purchases of LNG cargoes on the spot market after the island shut down its final nuclear reactor, Bloomberg reported on May 19.

The island nation has long been reliant on the super-chilled fuel as a top five importer globally and now appears to have further cemented its status as a key LNG buyer.

The shift to LNG comes as the northeast Asian market has officially turned its back on nuclear energy, with the country closing its final reactor following the expiration of the facility’s 40-year operating licence.

Taipei made the choice in 2014 to wean itself off nuclear energy, following the Fukushima disaster in 2011 in neighbouring Japan, in a decision celebrated by environmentalists and activist groups.

The country’s state-owned oil and gas firm CPC Corp is now seeking to buy three cargoes to be delivered in August and September, traders with knowledge of the matter told Bloomberg. The company also agreed to buy at least one cargo that will be delivered in either June or July.

Indeed, Taiwan’s LNG imports are at a record level for this time of the year. Meanwhile, with nuclear energy now out of the picture and demand for the country’s semiconductors continuing to rise amid the AI and data centre boom, Taiwan’s shift to LNG appears highly vulnerable to price volatility.

Taiwan’s thirst for the super-cooled gas comes as the US pushes the island to increase its purchases of US LNG as part of President Donald Trump’s attempt to reduce the trade deficit with Taiwan.

Amid a threat of 32% tariffs by Washington on Taiwanese goods, Taiwan’s CPC signed a letter of intent (LoI) with the state-run Alaska Gasline Development Corporation (AGDC), signalling both investment in the project and the purchase of future supplies.