Taiwan turns to coal as Middle East conflict disrupts LNG supply

Taiwan is increasing coal-fired power generation to strengthen energy security as disruptions in global liquefied natural gas (LNG) supply intensify as a result of  the Middle East conflict, according to Bloomberg.

State utility Taiwan Power Company will procure additional coal-fired electricity from the Mailiao plant starting in May, after ramping up Units 1 and 3, the island’s Ministry of Economic Affairs said.

The shift comes as the conflict involving the United States, Israel, and Iran disrupts LNG and oil flows, including through the Strait of Hormuz, forcing countries to rely more on coal.

Taiwan, which depends on LNG for about half of its electricity generation, has been affected by supply constraints, including disruptions at Qatar’s largest LNG export facility.

Read also : Global coal prices rise as LNG disruptions drive fuel switching

The government said the move to increase coal use is intended to mitigate supply risks and reduce the impact of higher gas prices on electricity tariffs.

Other Asian countries, including Japan, South Korea, and Bangladesh, have also increased coal usage, while some European countries are considering similar measures, Bloomberg reported.

Taiwan said it has secured LNG supply through May and about half of its needs for June, while all power generation units continue to operate as scheduled.

Editing by Alexander Ginting