Taipei [Taiwan], September 9 : A prominent US-based think tank has cautioned Taiwan to urgently address critical weaknesses in its energy infrastructure, warning that its dependence on Qatari liquefied natural gas (LNG) could leave it vulnerable to Chinese geopolitical pressure, as reported by the Taipei Times.
According to the Taipei Times, the Foundation for Defense of Democracies (FDD) released a report following a tabletop simulation held in July that explored potential Chinese strategies to disrupt Taiwan's energy supplies.
The two-day exercise involved experts from Taiwan, Japan, Australia, and the UK and simulated a cyber-enabled economic warfare (CEEW) campaign aimed at crippling Taiwan's LNG and coal imports.
The FDD warned that China could use a combination of cyberattacks, diplomatic manoeuvres, and military intimidation to interfere with Taiwan's energy lifelines, particularly its LNG shipments from Qatar, which accounts for around 30% of the nation's gas imports. The report argued that Qatar, despite its long-term energy agreement with Taiwan, could yield to Beijing's influence.
According to the Taipei Times, Taiwan generates nearly half of its electricity from LNG and relies entirely on imports for both gas and coal. With limited energy storage capacity, any significant disruption could force the government to make tough decisions between sustaining essential services and keeping its vital semiconductor industry running.
To reduce risk, the FDD suggested that Taiwan diversify its LNG sources, potentially by securing more imports from the United States, even at higher prices, while also investing in additional storage, renewable energy, and even considering a return to nuclear power. The report also called for stronger grid infrastructure and cyber defence capabilities.
Taiwan phased out its last operational nuclear reactor in May 2024 as part of a longstanding policy shift. However, the think tank argues that reactivating nuclear plants might now be necessary for national security, as highlighted by the Taipei Times.
The FDD urged stronger coordination with global allies. As noted by the Taipei Times, countries like Australia, Japan, and the US could play key roles in safeguarding Taiwan's energy resilience in the event of a crisis.
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