In response to rising geopolitical instability in the Middle East, Taiwan's state-owned oil and gas company, CPC, sought to reassure the public on Monday that the country's energy supplies remain stable and unaffected. The company emphasized that it has long adopted a strategy of diversified procurement and risk mitigation for both crude oil and liquefied natural gas (LNG), with strategic reserves meeting legal requirements and fully sufficient to meet domestic demand.
Following the recent outbreak of military conflict between Israel and Iran, CPC noted that all crude and LNG suppliers have continued deliveries as scheduled. The company confirmed that there have been no disruptions to Taiwan's oil and gas imports.
CPC also disclosed that it has contingency plans in place following guidelines issued by the Ministry of Economic Affairs, prepared to respond swiftly should the conflict escalate or disrupt supply chains in the broader region.
In the short term, the company is prepared to procure spot cargoes of oil and gas from alternative regions, adjust refined fuel export plans as needed, and negotiate with current mid- to long-term LNG suppliers to increase supply volumes.
Over the medium to long term, CPC will continue efforts to diversify its sources of oil and gas, expand and upgrade domestic LNG storage and regasification infrastructure, and enhance supply chain resilience and flexibility in natural gas distribution.
The company also reaffirmed its commitment to price stability mechanisms, pledging to help moderate domestic fuel prices amid international market volatility. It will continue to review gas procurement costs under Taiwan's regulated gas pricing formula, balancing energy affordability with inflation control policies.
CPC concluded that it will follow government directives to ensure uninterrupted supply while protecting households and industries from the ripple effects of global energy market shocks.
Article edited by Joseph Tsai
