Reopening Hormuz Strait Would Ease Oil Supply Pressure on Taiwan, CPC Chairman Says

By Sherry Qin

Allowing Taiwanese vessels to pass the Strait of Hormuz would greatly ease the pressure the island has come under since fighting choked off the key energy shipping route, says the chairman of Taiwan state-owned energy giant CPC Corp.

If CPC's crude oil tanker in the Persian Gulf can leave within the next two weeks, there would be two million barrels of oil heading on their way to Taiwan, CPC Chairman Fang Chen-jen said Wednesday.

Taiwan relies heavily on imports of fuel, with about 37% of its liquefied natural gas supply linked to Middle East routes via the strait, according to Goldman Sachs data. Shipping via the passage has ground to a virtual halt due to the U.S.-Israel war with Iran.

No Taiwanese oil tankers have passed through the waterway since the start of the conflict but Fang said CPC ships might be able to deliver oil to Taiwan via Red Sea routes by mid-April. Negotiations with Saudi Arabia and the United Arab Emirates on that front are currently underway, he said.

The company is also in contact with oil suppliers in West Africa, Southeast Asia, Australia and the U.S.

CPC has played a central role in helping Taiwan secure energy supply during the current crisis, and stabilize oil and natural-gas prices.

The company has absorbed recent increases in gasoline and diesel prices, while natural gas and electricity prices remained unchanged in April.

Fang said in a presser last week that CPC has absorbed around NT$9 billion, or US$282.1 million, of higher fuel costs as of April 5.

While that will weigh heavily on the company's financials, it will continue to coordinate with the government, he added.

Taiwan's premier, Cho Jung-tai, said last month that the government will help CPC seek special financing from institutions. It also plans to allocate funds from the special budget to the company, and help it with an around NT$350 billion capital injection plan.

Inflation data earlier showed that Taiwan's inflation cooled unexpectedly in March despite higher energy prices.

Taiwan's Cabinet said this week that oil and gas stockpiles remain above required levels and supply is stable.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

April 08, 2026 05:48 ET (09:48 GMT)

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