CPC Corporation: Arranging Q4 Oil and Gas Allocation, Supply Should Be Fine

Central News Agency

(Central News Agency reporters Tseng Yun-ting, Hsieh Yi-hsuan, Taipei, 11th) As the Middle East situation continues to affect energy supply, CPC Corporation, Taiwan Chairman Fang Jen-jen stated today at the Legislative Yuan that they have begun arranging oil and gas allocation for the fourth quarter of this year, and that the most tense period has passed, with supply for the fourth quarter "should be fine." Regarding some countries beginning to implement oil restrictions, Fang Jen-jen said that currently, no impact on Taiwan is foreseen.

The Legislative Yuan's Economic Committee today reviewed the operating budgets of affiliated units for the 2026 central government general budget, including the budgets for CPC Corporation, Taiwan and Taiwan Water Corporation, both under the Ministry of Economic Affairs.

DPP legislator Chen Ting-fei today questioned the domestic oil and gas reserves and supply security at the Legislative Yuan. Minister of Economic Affairs Kung Ming-hsin stated that current oil product reserves can last for more than 140 to 150 days; natural gas reserves are about 12 days, higher than the statutory safety stock of 11 days. Allocation for June and July has been largely completed, and planning and allocation for the fourth quarter are currently underway.

Fang Jen-jen stated that natural gas allocation was completed during the previously tense situation, and the current situation is more relaxed, so "there should be no problem," and planning for the fourth quarter is beginning. Regarding crude oil supply, he stated that although the Strait of Hormuz is not yet fully open, major oil-producing countries such as Saudi Arabia and the United Arab Emirates have adopted alternative solutions; for example, transporting crude oil to Red Sea ports via pipelines, or transshipping by ship-to-ship transfer outside the strait, all of which are currently being implemented.

Fang Jen-jen stated that crude oil exports from the Middle East have decreased by about 40% compared to before the war, but Taiwan's main source of crude oil imports is the United States, indicating a relatively limited impact. When legislators further questioned about the unresolved Middle East conflict and many countries implementing oil restrictions, Fang Jen-jen said that currently, no impact on Taiwan is foreseen.

In addition, CPC Corporation, Taiwan recently signed a long-term LNG contract of approximately 25 years with Cheniere, the largest liquefied natural gas (LNG) exporter in the United States, with deliveries expected to begin in June. Minister Kung Ming-hsin stated in an interview before the meeting that currently about 30% of Taiwan's natural gas comes from Qatar in the Middle East. Considering the higher geopolitical risks, the government continues to promote the diversification of gas sources.

He pointed out that currently, US natural gas accounts for about 10% of Taiwan's imports, with a goal to increase this to 25% by 2029, thereby reducing the risk of supply concentration and strengthening gas supply stability.

Regarding CPC Corporation, Taiwan's financial situation, Minister Kung Ming-hsin stated that due to fluctuations in international energy prices in recent years, CPC Corporation, Taiwan has continuously absorbed the prices of gasoline, diesel, and natural gas; among them, approximately NT$14.18 billion has been absorbed for gasoline and diesel, and costs for natural gas for civil and industrial use have also been continuously absorbed, leading to heavy financial pressure.

Minister Kung Ming-hsin said that the Executive Yuan is currently assisting CPC Corporation, Taiwan through three methods: special loans, appropriations, and capital injections. The special loan process has been completed, the appropriation plan is currently being compiled by the Directorate-General of Budget, Accounting and Statistics, and a capital injection of NT$350 billion is planned for the next four years, with approximately NT$170 billion budgeted for the next fiscal year. (Editor: Chang Liang-chih) 1150511

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