Ministry of Economic Affairs: Australia's New Natural Gas Policy Unaffected by Taiwan's LNG Procurement Contracts

CENTRAL NEWS AGENCY

(Taipei, May 8, Central News Agency reporter Tseng Yun-ting) Regarding the Australian government's plan to implement a domestic natural gas reserve program starting July 2027, the Ministry of Economic Affairs stated today that it has grasped the policy development at the first instance. The existing medium-to-long-term liquefied natural gas (LNG) procurement contracts between CPC Corporation, Taiwan and Australian suppliers will not be affected. The government will also ensure stable domestic natural gas supply through mechanisms such as diversified procurement and vessel scheduling adjustments.

The Ministry of Economic Affairs pointed out in a press release that Australia is one of Taiwan's important LNG supply sources, accounting for about 33% of Taiwan's total LNG imports last year. The Australian government recently announced the reform direction of its "Gas Market Review," planning to promote the "Australia Domestic Gas Reserve Program" from July 1, 2027, requiring LNG exporters to reserve a certain proportion of natural gas for the Australian domestic market.

However, the Ministry of Economic Affairs stated that based on currently available information, the Australian government will respect existing contracts signed before December 22, 2025. All relevant medium-to-long-term contracts between CPC and Australian suppliers have been signed before the deadline, so Taiwan's existing rights and interests will not be affected.

The Ministry of Economic Affairs emphasized that Taiwan's natural gas supply has established a risk management mechanism, including preparing safety stocks, diversifying import sources, and stabilizing supply through medium-to-long-term contracts to enhance import security. Even if the total amount of natural gas exported by Australia to the spot market decreases in the future, it can still be replaced by procuring gas from the United States and the Asia-Pacific region.

The Ministry of Economic Affairs stated that it will continue to monitor the implementation details of Australia's new policy and understand the policy execution methods from the Australian side in a timely manner to grasp possible impacts.

In addition, regarding recent public concerns about Taiwan's natural gas safety stock being only about 11 days, and the possibility of Middle East tensions impacting energy supply, the Ministry of Economic Affairs emphasized that more than two months have passed since the outbreak of conflicts in the Middle East on February 28, and no power outages or oil shortages have occurred domestically, showing the resilience of Taiwan's energy supply.

The Ministry of Economic Affairs pointed out that facing the risk of a potential blockage of the Strait of Hormuz, the current assessment is that natural gas supply will remain unaffected until August or September this year. CPC has also planned winter natural gas procurement in advance to ensure uninterrupted domestic gas supply. (Editor: Lin Shu-yuan) 1150508

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