Taiwan’s CPC turns to spot market, diversifies LNG supply amid Middle East conflict

Taiwan's state-run CPC Corporation has emerged as Northeast Asia's most active spot LNG buyer since the outbreak of the Middle East conflict, ramping up purchases to offset supply disruptions and diversify procurement away from its traditional suppliers.

Taiwan is among the most exposed buyers in Northeast Asia to Qatari LNG, with nearly 40% of its long-term contracted supply sourced from Qatar, according to S&P Global Energy CERA data.

"Taiwan needs to buy about seven cargoes a month to substitute for Qatari cargoes," an LNG trader based in North Asia said.

Since the start of the war, CPC has repeatedly entered the market through spot tenders, often seeking up to three cargoes at a time. Its latest tender, which closed May 26, sought two August-delivery cargoes and one September-delivery cargo, according to market sources.

Market participants said CPC has also supplemented tender activity with bilateral purchases, as heightened geopolitical risks, freight uncertainty and volatile prices pushed importers to prioritize speed, discretion and flexibility.

One trader estimated CPC has secured an average of one to two spot cargoes per week since the conflict began three months ago. This would mean an estimated total of 12-24 spot cargoes for March-September deliveries, aligning with an earlier announcement that the country had secured enough natural gas supplies through September.

About half of CPC's spot purchases are based on tenders, said the North Asia-based trader.

While buying through a tender can reach sellers efficiently, buyers are sometimes cautious about sharing their buying strategies with the market, leaving CPC some room to buy spot cargoes bilaterally, LNG traders said.

A third LNG trader said end-users were increasingly cautious about signaling buying interest through public tenders, fearing that visible demand could reinforce bullish sentiment and push prices even higher.

CPC has not replied to Platts' email confirming its spot purchase.

The Platts JKM, the benchmark for spot LNG delivered into Northeast Asia, rose from about $10-$11/million British thermal units in late February to above $25/MMBtu in early March following the outbreak of the Middle East conflict, before remaining elevated in the high-teens to low-$20s/MMBtu range through April and May. Platts is part of S&P Global Energy.

Diversifying sources

Taiwan imported 1.81 million metric tons of LNG from Qatar over January-March this year, CERA data showed.

However, no Qatari cargoes were delivered to Taiwan in April and May following disruptions in the Strait of Hormuz, prompting CPC to widen its procurement base.

The shift has been most visible in imports from the United States. US LNG deliveries into Taiwan more than tripled following the outbreak of the Middle East conflict, rising to around 1.33 million mt over March-May 2026 from 0.44 million mt in the same period a year earlier, according to CERA data.

The increase comes as Taiwan and the US deepen trade ties. Earlier this year, the Trump administration finalized a reciprocal trade agreement that maintained a 15% tariff on Taiwanese imports while securing commitments from Taiwan to expand purchases of US goods, including $44.4 billion worth of LNG and crude oil between 2025 and 2029.

Multiple traders noted that several buy tenders from the state company have specified a US-origin requirement, suggesting procurement is being shaped in part by the government-to-government agreement.

According to S&P Global Commodities at Sea data, five LNG tankers laden with US LNG are scheduled to arrive in Taiwan over the next two weeks.

Taiwan has also broadened procurement from other Atlantic Basin suppliers. Cameroon delivered its first LNG cargo to Taiwan since December 2023 in April, totaling around 0.07 million mt.

Meanwhile, Canada has emerged as a new supply source following the startup of LNG Canada in 2025. Taiwan received around 0.36 million mt of Canadian LNG over February-May 2026, according to CERA data.

Other Northeast Asia buyers

CPC's activity contrasted with softer spot buying interest from other Northeast Asian buyers, where comfortable inventories, weaker near-term demand and caution over outright prices curbed procurement appetite.

"Although China is affected by the supply disruptions in the Middle East, but we have sufficient pipeline gas supply," a second-tier buyer from China said, adding that Chinese buyers remain cautious about committing to cargoes at elevated outright prices.

In Japan, utility buyers had bought several cargoes since the start of the war, with nuclear availability and alternative generation sources helping to limit the need for additional spot procurement.

South Korea has also remained closely watched by the market as participants assess how key Northeast Asian buyers are managing procurement under heightened geopolitical uncertainty.

Traders said South Korea was also relatively active, buying summer cargoes through bilateral negotiations and issuing swap tenders as it managed seasonal supply needs.