Taiwan has enough crude oil reserves for more than 100 days and sufficient natural gas reserves for more than 11 days, both above the regulatory safety requirement, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday, adding that the government would prioritize domestic price stability as conflicts in the Middle East continue.
Overall, energy supply for this month is secure, and the government is continuing efforts to ensure sufficient supply for next month, Kung told reporters after meeting with representatives from business groups at the ministry in Taipei.
The ministry has been holding daily cross-ministry meetings at the Executive Yuan to ensure stable supplies of gas and crude oil, Kung added.
Photo: CNA
Taiwan receives about 30 natural gas shipments each month, of which about 10 come from the Middle East, while the remaining 20 are from other regions, he said.
State-run CPC Corp, Taiwan (中油) has implemented a “dual stabilization mechanism,” including oil price smoothing measures and lowest-price principle among neighboring Asian economies, to keep domestic fuel prices within a controlled range, Kung said.
Electricity prices would ultimately be decided by the electricity rate review committee, but the government’s stance remains to keep prices as stable as possible, he said.
Responding to questions about whether the minister had made commitments regarding electricity pricing policy, General Chamber of Commerce chairman Paul Hsu (許舒博) said after the meeting that Kung had expressed confidence during the meeting that electricity prices could remain relatively stable for now.
As for natural gas prices, whether rates for households and power utilities would be adjusted next month is still under review, Kung said.
Since CPC and Taiwan Power Co (台電) are state-owned enterprises, part of their mandate is to help stabilize prices, meaning they would not always adjust prices immediately in line with market movements, he said.
To secure natural gas supply, the government is pursuing three approaches, Kung said.
First, it is coordinating with major suppliers such as the US and Australia to bring forward cargo deliveries to next month, he said.
Second, the government is exploring possible gas dispatch or exchange arrangements with Asian economies such as Japan and South Korea, although implementation is challenging, as demand remains high across the region, Kung said.
Third, the government might procure gas from the spot market, although such purchases typically come at higher prices and therefore require careful assessments, he said.
Regarding whether coal-fired backup generators might be activated, Kung said it would be a later-stage contingency measure.
Taiwan is still within its seasonal air pollution control period, meaning any use of coal units would need to consider the impact on air quality, he said.
The government would reassess whether additional measures are necessary after April, when the pollution control season ends and regulatory flexibility increases, Kung added.
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