CPC: Strait of Hormuz Set to Open, Crude Oil Loading Planned in Persian Gulf for July and August

Key News on U.S.-Iran Conflict

Central News Agency Report

(CNA reporter Hsieh Yi-hsuan, Taipei, June 17) The United States and Iran have preliminarily reached an agreement and are expected to sign a peace accord on June 19, opening the Strait of Hormuz. This development is widely anticipated to stabilize global crude oil supply. CPC stated today that the situation remains uncertain and is still under observation. If the opening of the Strait of Hormuz is confirmed, CPC plans to load diverse crude oil—such as asphalt-base crude and high-sulfur crude—from ports within the Persian Gulf in July and August.

In response to media inquiries regarding the easing of Middle East tensions and Taiwan's energy supply situation, CPC said that it has contacted shipping companies and suppliers with vessels currently stranded inside the Gulf. All parties have indicated that due to ongoing uncertainty, they are continuing to monitor the situation.

CPC explained that Taiwan's nationwide oil inventory levels are currently at a high level. If the Strait of Hormuz is officially opened, CPC will designate loading operations within the Gulf during July and August to secure a wider variety of crude oil, including asphalt-base and high-sulfur crude. This will also support the production of by-products such as asphalt and sulfur to meet domestic demand.

Regarding natural gas, CPC mentioned that if the U.S. and Iran successfully sign the peace agreement on June 19 and the Strait of Hormuz gradually resumes vessel passage, it will evaluate importing LNG from Qatar. The first shipments are expected to arrive in Taiwan starting early September, with timely adjustments made to gas volumes and shipping schedules.

CPC emphasized that it will continue to closely monitor developments in the Middle East and flexibly adjust its oil and gas procurement strategies as needed.

Economic Minister Kung Ming-hsin, speaking to the press today during an appearance at the Legislative Yuan's Economic Committee, stated that the end of hostilities is positive news for energy-importing nations. He noted that Qatar's LNG facilities have sustained some damage, and CPC will promptly contact Qatari gas companies to coordinate supply. In the long term, Taiwan's LNG procurement agreement with the U.S. has already taken effect, and the proportion of U.S. imports will gradually increase.

On LNG shipping arrangements, Kung said that gas supplies required before September have already been secured, and dispatch planning for the fourth quarter has begun and will continue. As for pricing, once the conflict ends, prices will revert to market mechanisms. Securing supplies early does not result in losses and, in fact, is a prudent and beneficial move. (Editor: Pan Yi-ching) 1150617