Taiwan Eyes Nuclear Revival Amid Soaring LNG Prices and Dependence

Taiwan is reconsidering its nuclear energy policy after shutting down its last reactor in May 2025 as part of an effort to reduce coal use and shift towards natural gas. However, with soaring LNG prices and a growing dependence on imported gas, the island is now exploring a nuclear comeback.

The preparations for restarting nuclear reactors are already underway, with Taipower submitting a restart plan for the Maanshan nuclear power station in March 2026. The regulatory reviews are advancing, but restoring nuclear generation will take years, limiting its ability to ease the immediate supply squeeze.

Taiwan's reliance on LNG imports has increased significantly, with the island importing almost 9% more LNG in 2025 compared to the previous year. The Asian spot LNG benchmark JKM has almost tripled over the past six months to around $29/MMBtu, adding to inflationary pressure and imposing a substantial burden on public finances.

The government's proposed energy package aims to help recapitalise Taiwan's state-owned oil and gas supplier CPC and subsidise oil, gas, and electricity costs. However, restarting nuclear reactors is expected to take years, and the legal route has already opened with a May 2025 amendment allowing reactors with expired licences to apply for renewals of up to 20 years.