Tensions in the Middle East have exposed vulnerabilities in Taiwan’s energy supply, as the current energy crunch is not a global crisis, but one marked by sharp regional disparities, an expert said yesterday.
Speaking at a Taipei forum on the global impact of the conflict that broke out when the US and Israel attacked Iran on Feb. 28, National Taiwan University Department of Finance adjunct professor Christina Liu (劉憶如) said the ongoing energy challenges differ from past crises, as supply and pricing gaps vary significantly across regions.
“The current situation is not a global energy crisis, but one marked by regional disparities,” she said.
Photo: Wang Yi-sung, Taipei Times
The disparity is particularly evident in liquefied natural gas (LNG) markets, where prices in Asia and Europe range between US$18 and US$20, compared with less than US$3 in the US, she said.
Unlike crude oil, which is often priced globally, natural gas markets show wide regional price divergence, Liu said.
The imbalance highlights the uneven impact of geopolitical disruptions, with Asian economies — heavily reliant on imported energy — bearing the brunt of supply constraints, she said.
About 80 percent of crude oil and about 90 percent of LNG exports transiting the Strait of Hormuz are shipped to Asia, according to a fact sheet issued by the International Energy Agency in February.
Such a high concentration of exports amplifies Asia’s exposure to supply disruptions, Liu said.
For Taiwan, the situation underscores the risks of depending on fossil fuels and external sources of energy, Liu said, adding that energy issues should be viewed not only through an environmental lens, but also as a matter of national security.
“Reducing reliance on fossil fuels is critical, not just for environmental reasons or carbon tariffs,” she said.
Taiwan last year imported 69.6 percent of its crude oil from the Middle East and 33.7 percent of LNG from Qatar, Energy Administration data showed.
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