Lawmaker Demands Energy Risk Audit Amid Middle East Tensions
DP legislator urges immediate stress test on oil and LNG supply routes as Strait of Hormuz risks escalate.
Democratic Progressive Party legislator Chen Kuan-ting called for an immediate energy risk assessment. He cited rising tensions in the Middle East as the primary driver for this action. The Strait of Hormuz faces heightened shipping risks. Houthi militants are also threatening the Bab el-Mandeb Strait. These two chokepoints control critical global energy flows.
Chen stated that worsening conditions will increase air and sea freight costs. The petrochemical industry will face higher input prices. These costs will transfer to domestic commodity prices. He warned that global competition for energy supplies will intensify. Early preparation is necessary to mitigate these financial impacts.
Ministry Ordered To Run Stress Tests
The Ministry of Economic Affairs must conduct a disruption stress test. This test should assume maritime shipments through key straits are blocked. It must calculate how long current reserves will last. The test must define supply priorities for civilian and industrial users. It must also estimate the time needed to secure alternative deliveries.
CPC Corp, Taiwan and Taiwan Power Co are part of this mandate. The energy administration is also included in the review. These entities must prepare for potential supply shocks. The goal is to reduce exposure to volatile shipping lanes. Diversification of sources is a core requirement.
Tanker Routes Require Detailed Tracking
CPC Corp must compile a list of incoming tanker schedules. This list must cover the next few months. It must specify dates, origins, and routes. The company must identify which ships cross the Strait of Hormuz. It must also track vessels passing through Bab el-Mandeb.
Chen advised contacting suppliers in the US and Australia. These nations are non-Middle Eastern crude producers. Alternative sources must be arranged immediately. This reduces reliance on high-risk regions. The strategy aims to secure stable energy supplies.
Defense Stocks Affect Global Logistics
US military munitions stocks have fallen by more than half. This data comes from the Center for Strategic and International Studies. The US uses large quantities of missiles in operations against Iran. Production of air-defense systems is under pressure. Logistics networks are strained by simultaneous regional demands.
Taiwan must diversify its asymmetric warfare equipment sources. Domestic production capacity must be expanded. Overseas facilities must also be utilized. This ensures replenishment capability is available. The report was sourced from GN auto markets/energy: natural gas. This move secures future strategic options.
