Minister of Economic Affairs: Crude Oil Procurement and Transportation Normal, 4 to 5 Ships to Arrive in Taiwan in May

Central News Agency

(Taipei, April 22, Central News Agency reporter Tseng Yun-ting) Amid escalating conflicts in the Middle East affecting energy supply, Minister of Economic Affairs Kung Ming-hsin stated today in the Legislative Yuan that Taiwan's crude oil procurement and transportation remain normal. Four oil tankers are scheduled to arrive in April, and 4 to 5 ships are planned for May. The source of crude oil has largely shifted to the United States, accounting for 60%, which helps reduce geopolitical risks.

Today, the Legislative Yuan's Economic Committee reviewed the Ministry of Economic Affairs and its affiliated units' budget for fiscal year 115. Kuomintang legislator Lai Shyh-bao expressed concern about the impact of the Middle East situation on Taiwan's energy and power supply.

Kung Ming-hsin pointed out that CPC Corporation and Formosa Petrochemical have mostly adjusted their transportation routes, with only one tanker each still operating in the Persian Gulf, while others have been rerouted through the Red Sea and other export channels. CPC Corporation's crude oil procurement from the United States has increased to about 60%, and the overall crude oil safety stock is maintained at about 140 days.

Regarding the impact on oil prices and commodity prices, Kung Ming-hsin stated that international oil prices are currently around $90 per barrel. If the situation in the Middle East stabilizes, the probability of exceeding $100 is not high.

Regarding the super-large oil tanker 'Jun Shan' carrying approximately 2 million barrels of crude oil heading to Mailiao Port in Taiwan, Democratic Progressive Party legislator Tsai Yi-yu asked if it would help alleviate the domestic shortage of asphalt and other petrochemical products.

Kung Ming-hsin stated that Taiwan's daily crude oil demand is about 150,000 barrels. The recent arrival of an oil tanker carrying about 2 million barrels of crude oil can support domestic demand for more than half a month. Coupled with the arrival of 3 CPC Corporation and 1 Formosa Petrochemical oil tankers in April, this will help stabilize the supply of energy and petrochemical raw materials.

In terms of petrochemical raw materials, he stated that domestic asphalt inventory and production capacity are initially estimated to be sufficient until the end of June. CPC Corporation has initiated external procurement, and Formosa Petrochemical can also increase refining capacity with the arrival of crude oil. If public works are affected by asphalt shortages, the Ministry of Economic Affairs will assist in matching and dispatching individual cases. (Editor: Pan Yi-ching) 1150422

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