Unlike many other nations affected by the ongoing coronavirus pandemic, Taiwan’s energy mix has not led to a reduction in its demand for liquefied natural gas (LNG), with requests from suppliers even said to be on the rise as the nation starts to come out of the peak summer demand period.
Speaking at the Gastech Virtual Summit, CEO of the natural gas sector at Taiwan’s state-run CPC Corporation, Jane Liao, said “Our situation here in Taiwan is that the demand of LNG is still moving up” according to industry sources.
Continuing“(T)here’s no major negative impact on the energy market here because of COVID-19,” she also said that Taiwan was “enjoying” the low rates being charged for the fuel – largely on the back of reduced demand because of the virus.
“For the year 2021, there will be more and more cargoes that we need in addition to our long-term or mid-term contracts. There’s a possibility that the spot price in the market will still be very low, which is good news for the LNG importers, but we still are looking forward to the [global COVID-19] recovery,” Ms. Liao said.
Liao also touched on the Taiwanese government’s current energy policy under which gas-fired energy generation must produce 50% of the electricity mix by 2025. At present that figure is around 35%.
Nuclear power generation in Taiwan must also be phased out in the next five years according to the ruling DPP government of President Tsai Ing-wen, but making up 12% of the present energy mix, nuclear generated electricity needs to somehow be replaced.
“For the future as an LNG importer, we are still concerned about where will the long-term suppliers come to the market,” Ms. Liao went on to say. “We are still seeking. Probably this might become an issue in the coming years.”