Explainer: Middle East Conflict's Impact on Taiwan's Energy Situation｜TaiwanPlus News

Why It Matters

Taiwan’s heavy import dependence and concentration of gas and oil sources make its energy security—and by extension its semiconductor-driven economy—highly vulnerable to disruptions and price shocks from Middle East instability, with immediate implications for export costs and domestic inflation.

Summary

Taiwan imports about 96% of its energy, relying on the Middle East for roughly 70% of its oil and on Qatar for about 30% of its natural gas—fuel that supplies over half of the island’s electricity and a large share of industrial demand, including chip fabs that run 24/7. The government is cushioning consumers by having state-owned CPC absorb most fuel price increases and has three months of oil reserves and secure gas supplies through April, while locking in LNG shipments from May and boosting imports from the U.S. Taipei also closed its last nuclear plant last year and is set to review a potential restart and electricity pricing by the end of March. Analysts warn prolonged conflict in the Middle East would raise shipping costs and energy prices, squeezing exporters’ competitiveness and adding pressure to Taiwan’s supply chains and cost of living.

Original Description

Taiwan is facing energy security concerns as war in the Middle East threatens global oil supplies. Because the island imports about 96% of its energy, disruptions could affect electricity, raise costs and impact key industries like semiconductors. The government is using reserves and seeking alternative supplies, while experts debate whether nuclear power could help strengthen Taiwan’s energy security.

📹 Reporter(s): Ryan Wu/Ai Chi

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