Taiwanese Lawmaker Calls for Energy Risk Assessment Amid Middle East Tensions

Democratic Progressive Party Legislator Chen Kuan-ting has called for an early energy risk assessment by the Taiwanese government due to escalating tensions in the Middle East.

The Strait of Hormuz and Bab el-Mandeb Strait are crucial shipping lanes, and disruptions could lead to increased air and sea freight costs, as well as higher commodity prices for Taiwan's petrochemical industry.

CPC Corp, Taiwan should compile a list of oil and natural gas tanker shipments expected to cross these straits in the coming months, allowing them to determine which routes are at risk. The company also needs to consult with non-Middle Eastern crude-producing countries to secure alternative sources.

Chen suggested that an energy-disruption stress test be conducted by the Ministry of Economic Affairs, assessing Taiwan's reserves and delivery times from alternative sources in case of a disruption.