Taiwan Weighs Nuclear Return Amid Surging LNG Costs and Supply Risks

Key Facts

In a move reflecting global energy security pressures, Taiwan is exploring a return to nuclear power just one year after decommissioning its last reactor. According to reports, Taipower has submitted a formal restart plan for the Maanshan nuclear station, driven by soaring LNG prices and mounting concerns over heavy import dependency. This strategic pivot to re-evaluate the island's energy mix comes after the reliance on natural gas placed significant financial strain on public utilities.

Industry data indicates that natural gas covered 50.5% of Taiwan's electricity generation by July 2026, up from 30.6% in 2015. This shift, coupled with the Asian LNG benchmark JKM tripling over the past six months to approximately $29/MMBtu, led Taipower to report a first-half pre-tax loss of $810 million. Per market data, Taiwan's LNG imports rose 6% between January and August 2026 compared to the previous year, with Australia emerging as the island's largest supplier.

On the macroeconomic front, data as of September 17, 2026, shows no direct instrument prices available, yet the nuclear shift aims to alleviate inflationary pressures that saw August inflation forecasts raised to 2.07%. Traders are monitoring how this transition might impact regional LNG demand amid ongoing global supply chain volatility. There are no upcoming events in the economic calendar specifically targeting Taiwan's energy sector over the next seven days, leaving focus on the regulatory progress of the restart plan.