Taiwan Rekindles Nuclear Ambitions Amid Soaring LNG Prices

Taiwan's energy strategy is shifting due to soaring LNG prices and growing dependence on imported gas. The country is reviving its nuclear power program, which was shut down in May 2025 after a phaseout pursued by the Democratic Progressive Party (DPP) since 2016.

The preparations for the nuclear comeback are already underway: Taipower submitted a restart plan for the Maanshan nuclear power station in March 2026, and regulatory reviews have advanced to their concluding round. However, restoring nuclear generation will take years, limiting its ability to ease the immediate supply squeeze.

Taiwan's reliance on LNG imports has been increasing, with 23.6 million tonnes imported in 2025, a nearly 9% year-on-year increase. The Asian spot LNG benchmark JKM has almost tripled over the past six months to around $29/MMBtu due to the US-Iran war and the blockade of the Strait of Hormuz.

The government's proposed $13.3 billion energy package aims to help recapitalize Taiwan's state-owned oil and gas supplier CPC and subsidize oil, gas, and electricity costs. The nuclear option is becoming more commercially compelling due to the growing fiscal burden and the need to reduce LNG dependence.