Taiwanese Economy Ministry instructs oil firms to raise fuel stockpiles and report inventory and shipping schedule data every day

Taiwanese Economy Ministry instructs oil firms to raise fuel stockpiles and report inventory and shipping schedule data every day

Taiwanese Economy Ministry Directs Oil Firms to Boost Fuel Stockpiles Amid Regional Tensions

The Ministry of Economic Affairs (MOEA) has instructed domestic oil companies to increase fuel reserves and submit daily inventory and shipping schedule reports to ensure energy security amid heightened geopolitical risks. This directive follows concerns over potential disruptions to liquefied natural gas (LNG) supplies, which currently meet Taiwan's demand until the end of March 2026.

To mitigate short-term supply risks, the MOEA has prioritized gas-fired generation while preparing contingency measures, including restarting coal-fired units at the Hsinta Power Plant if the operating reserve margin falls below 8%. State-owned utility Taipower has already begun stockpiling thermal coal for the plant, though coal-fired generation remains a last resort. The ministry emphasized that coal reserves will serve as a buffer against LNG shortages, particularly as global spot prices remain volatile due to Middle East conflicts.

CPC Corporation, Taiwan's state-run energy firm, confirmed that LNG and crude oil shipments remain unaffected, with suppliers maintaining scheduled deliveries. However, CPC has diversified its crude oil imports, reducing reliance on the Middle East to 34.9% in 2025 from 45% in 2022, while increasing purchases from the U.S. to 61.8%. The company also highlighted plans to expand LNG terminal capacity, including the Taichung and Yung-An terminals, to meet rising demand.

The MOEA's energy transition strategy aims to increase natural gas to 50% of electricity generation by 2025, reduce coal use, and phase out nuclear power. To align with this, the government has mandated minimum LNG storage capacity and security stockpile requirements, which will rise to 24 days and 14 days of daily demand by 2027.

Market analysts note that while seasonal demand declines in northeast Asia may provide temporary relief, prolonged LNG supply disruptions could push utilities to rely more on coal, potentially affecting regional energy prices. The MOEA's proactive measures aim to balance short-term stability with long-term decarbonization goals, ensuring resilience amid ongoing geopolitical uncertainties.