Nikkei Asia recently reported that as tensions in the Middle East intensify and volatility in global energy markets rises, Taiwan’s structural dependence on imported energy has once again come under scrutiny. As an economy heavily driven by the technology sector, Taiwan is considered particularly exposed to such external shocks. The report cited comments from Tsaiying Lu, Director of Energy Security and Climate Resilience Research Program at DSET.
According to the report, roughly one-fifth of global oil shipments pass through the Strait of Hormuz, and recent U.S. and Israeli military actions against Iran have introduced significant uncertainty regarding maritime security in the area. Strategic consultancy BowerGroupAsia noted that the conflict could be viewed as a stress test of Taiwan’s energy security.
Official data show that LNG is Taiwan’s largest single source of power generation, accounting for more than 47% of electricity generation in 2025. Statistics from Taiwan’s Energy Administration under the Ministry of Economic Affairs (MOEA) indicate that Qatar is Taiwan’s largest LNG supplier, accounting for approximately 33.67% of imports in 2025, followed by Australia at 33.5%, while the United States accounts for about 10%. In addition, nearly 70% of Taiwan’s crude oil imports originate from the Middle East, with the United Arab Emirates, Oman, and Qatar ranking as the top suppliers.
The MOEA stated that Taiwan has already secured LNG supply sources for at least March and April and will continue maintaining strategic reserves exceeding 11 days of supply. The government has also announced that it will absorb around 60% of the increase in international oil prices to mitigate the impact of the Middle East conflict on the domestic energy market.
Lu noted that Taiwan has gradually reduced its reliance on Middle Eastern crude oil in recent years, with the share declining from about 56% in 2017 to 38.6% in 2025, indicating progress by the government and state-owned CPC Corporation in diversifying energy sources.
Lu emphasized that Taiwan’s most immediate challenge is rising fuel prices rather than a physical supply shortage. She added that as long as Taiwan can continue securing additional LNG cargoes from non-Gulf suppliers—such as Australia, Papua New Guinea, Brunei, or Indonesia—any potential shortfall from Qatar could be offset, as shipping times from these suppliers are typically under ten days.
However, Lu cautioned that pressure on electricity supply could intensify starting in June, as power demand rises during the summer months.
The report also noted that Taiwan’s long-standing reliance on imported energy makes the island particularly vulnerable during periods of geopolitical tension. Some international think tanks have similarly warned that Taiwan’s heavy dependence on external energy supplies, combined with limited storage capacity, could pose potential strategic risks.
