Taiwan is buying more cargoes of liquefied natural gas (LNG) for delivery over the next year, following the closure of a nuclear reactor and plans to phase out nuclear power generation by 2025.
Taiwan’s CPC Corp bought at least 10 shiploads of LNG through a tender this week to be delivered between May this year and March next year, traders familiar with the deals told Bloomberg on Friday. transactions.
According to traders, the LNG purchases are part of Taiwan’s strategy to procure more gas to offset the decline in nuclear power generation.
This week, Unit 2 of Taiwan’s Kuosheng Nuclear Power Plant was mothballed and will be decommissioned after its 40-year operating license expires. Taiwan has two operating nuclear reactors left at the Maanshan Nuclear Power Plant. The closure of these reactors is scheduled for 2024 and 2025.
The Democratic Progressive Party of Taiwan, elected in 2016 and re-elected in 2020, has a policy of phasing out nuclear production by 2025.
As Taiwan moves forward with nuclear power abandonment, other countries are rethinking their nuclear generation strategy after Russia’s invasion of Ukraine sent oil, natural gas and coal prices soaring and sparked security concerns energy.
Japan is also bringing back nuclear power as a key energy source. Japan, which vowed to reduce nuclear power as a source of electricity after the Fukushima disaster, is now considering using nuclear power for longer.
Late last year, the Japanese government confirmed a new nuclear energy policy, which the country had largely abandoned after the 2011 Fukushima disaster.
Late last year, a panel of experts from Japan’s Ministry of Industry decided that Japan would allow the development of new nuclear reactors and allow available reactors to operate after the current 60-year limit.
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