Taiwan Pivots to Coal Power as War Disrupts Global LNG Market

Taiwan will increase coal-fired power generation to bolster energy security, as the war in the Middle East crimps gas supplies.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Taiwan will increase coal-fired power generation to bolster energy security, as the war in the Middle East crimps gas supplies.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Taiwan Power Co., the government-owned utility that’s the main electricity supplier, will procure coal-fired power from the Mailiao plant from May after Units 1 and 3 are ramped up, the Ministry of Economic Affairs said.Global energy markets have been upended by the war between the US, Israel and Iran, which has cut flows of liquefied natural gas and crude oil. That’s forced governments to lean more on the dirtiest fossil fuel for power generation. In Asia, Japan, South Korea and Bangladesh have all increased their reliance on coal, while in Europe, countries including Poland may boost usage of coal gas. Germany, meanwhile, may reactivate a mothballed coal plant.Taiwan — which houses some of the world’s top chipmakers — typically relies on LNG for about half its electricity generation and bought about one-third of its supplies from Qatar last year. A shutdown in the largest LNG export plant in Qatar spurred by the conflict, coupled with the near-complete closure of the Strait of Hormuz, has sent the island scrambling for alternatives.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.While the island has managed to secure LNG supply through May, and also has arrangements for about half of its June requirements, additional spending on oil and gas is estimated to cost billions of dollars.The move to increase coal-fired power aims to address LNG supply risks, while mitigating the impact of high gas prices on electricity rates, the ministry said in a statement. Taiwan’s domestic gas supply remains sufficient, and all power generation units are operating as scheduled, it added.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.