US think tank warns Chinese economic warfare could choke Taiwan’s LNG lifelines
A U.S. think tank has warned that Taiwan’s reliance on Qatari liquefied natural gas (LNG) leaves it exposed to Chinese pressure, urging Taipei to diversify its energy sources.
In June 2024, QatarEnergy and Taiwan’s CPC Corporation signed a 27-year LNG supply and equity deal, with Qatar delivering 4 million tonnes annually from its North Field East project. Last year, Taiwan imported 21 million tonnes of LNG: Australia supplied 38 percent, Qatar 25 percent, and the U.S. 10 percent.
In July, the Washington-based Foundation for Defense of Democracies (FDD) held a tabletop exercise in Taipei simulating how the Chinese Communist Party could use economic warfare to block Taiwan’s energy imports without firing a shot. Nearly half of Taiwan’s electricity relies on LNG, all of which is imported, with limited storage. The report said this dependence threatens grid stability and creates a strategic vulnerability.
If LNG supplies were disrupted, Taiwan could face immedi...
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