Commodities

Stocksak: Taiwan to increase energy inventories in the face of China threat


© Stocksak. FILEPHOTO: You can see a Taiwan flag at Liberty Square in Taipei (Taiwan), July 28, 2022. REUTERS/Ann Wang

TAIPEI (Stocksak). Taiwan is increasing its energy stocks to boost its resilience in the event a crisis. This comes as China intensifies military pressure to force Taiwan to recognize Chinese rule.

China’s August blockade drills in Taiwan following a visit by Nancy Pelosi, U.S. House Speaker, have raised concerns about Taiwan about the possibility of an attack from its giant neighbor. However, China has not ruled it out using force to take democratically-governed Taiwan under its control.

Tseng Shen-Sheng is one of Taiwan’s deputy economic ministers. He told Stocksak in an interview that the government is increasing its and coal inventories as part President Tsai Ingwen’s push for strengthening the island’s resilience in an emergency amidst growing global geopolitical uncertainties.

Tseng answered questions about the possibility of China imposing pressure on Taiwan, which is 98% dependent on its energy imports, by saying, “When it happens, we need to have the ability to undertake pressure to some degree.”

He said that the ministry plans on increasing natural gas inventories by building new storage facilities throughout Taiwan by 2030. This is a significant increase from the current 11-day level.

Tseng stated that coal inventories will increase in the future, while crude oil inventories will remain at an average of over 100 days. He declined to reveal details as Taiwan does not benefit from making such information public.

China claims Taiwan is its territory. Over the past two years, it has intensified military and political pressure against Taiwan. Taipei strongly opposes Beijing’s claims to sovereignty and vows that it will defend its freedoms and democracy.

The Taiwan authorities are studying Russia’s invasion in Ukraine and Taiwan’s resistance to it. They also studied war tactics and used satellites to communicate with outsiders.

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