Taiwan Takes Stance on Russian Invasion

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Taiwan's economics affair minister confirmed Feb. 25 that the state-owned CPC will not extend a five–year LNG supply contract with Russia.

Economics Affairs Minister Wang Mei-hua also told Energy Intelligence that Taiwan has enough flexibility in its LNG supply situation so that “if needed, we can consult and coordinate with other countries” to assist in easing LNG shortages. However, she did not say whether Taipei had received any such requests.

Russia supplied 1.86 million tons of LNG to Taiwan in 2021, or about 9.2% of the 20 million tons Taiwan imported last year, according to Kpler. Taiwan imported about 6.2% of all Russian exports in 2021.

Deal Will Not Be Renewed

Speaking with reporters at the Legislative Yuan, Taiwan's parliament, Wang said state-owned CPC currently has a 750,000 ton per year five-year contract with the Sakhalin-2 project.

However, Wang stated that this contract will expire next month and will not be renewed.

She said CPC would make up the difference through new long-term contract arrangements or spot market purchases. Most of Taiwan's LNG imports came from Australia, Qatar and Indonesia, the economics minister added.

CPC has secured supplies, on contract or spot purchases, to cover Taiwan's LNG needs “through July and August.”

Wang said that state-owned CPC would probably have to make some purchases of “a small amount of LNG on the spot market” in the third quarter, however.

Joint Actions

Wang stated that Russia's infringement on Ukraine's independence and sovereignty provided justification for Taiwan to carry out export controls and reviews under the 1996 Wassenaar Arrangement.

She added that “we will conduct consultations with other countries on further measures and should soon undertake joint actions.”

President Tsai Ing-wen condemned Russia's attack on Ukraine Tuesday, but had avoided until Friday explicit affirmation that Taipei will join global economic sanctions against Moscow.

On Friday, Premier Su Tseng-chang affirmed that Taiwan condemned the Russian invasion of Ukraine and will join with the world's democratic community in imposing sanctions on Russia.

Sanctions, Gas Demand, LNG Contracts, LNG Demand, Ukraine Crisis
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