Energy security measures implemented in Thailand and Taiwan amid Middle East tensions

Rising geopolitical tensions in the Middle East and disruptions to major shipping routes, such as the Strait of Hormuz and the Bab el-Mandeb Strait, are driving global crude oil prices toward or above $90 per barrel. In response, regional energy authorities in Thailand and Taiwan are implementing measures to ensure domestic supply stability.

In Thailand, the Department of Energy reported that the country holds over 118 days of petroleum supply. This includes 34 days of crude awaiting transport, 33 days in transit, and 51 days in domestic storage. However, data indicates that domestic production of diesel and gasoline has fallen below previous averages, forcing the country to draw down existing inventories to meet demand. Industrial diesel consumption has decreased, suggesting factories are scaling back operations due to high fuel costs.

In Taiwan, CPC Corporation has reported that domestic oil and gas supplies are secure through the end of the year, with procurement plans already in place for the first quarter of 2027. To mitigate risks from Middle East conflicts and Red Sea shipping crises, CPC is diversifying its procurement sources to include the Americas, West Africa, and the Asia-Pacific region. The company is also coordinating with suppliers to reroute shipments and utilizing spot market purchases to fill gaps caused by sudden supply disruptions.