Coal power 'last resort' if Middle East gas supply difficult: Minister

Taipei, March 5 (CNA) Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said on Thursday that coal-fired power generation could be used as a "last resort" if natural gas supply becomes difficult amid the ongoing conflict in the Middle East.

March still falls within Taiwan's air pollution control season, so if coal-fired power generation is needed, authorities would wait until April, when restrictions are fewer, before evaluating the option, he said.

"If natural gas supply scheduling faces difficulties, activating backup coal-fired generating units will be a last resort," Kung told reporters after a meeting with industry groups.

Taiwan's energy supply for March is secure because the country's oil reserves exceed 100 days and natural gas inventories remain above the legal minimum of 11 days, Kung said.

The situation for April will be monitored through daily meetings chaired by Vice Minister of Economic Affairs Lai Chien-hsin (賴建信), he added.

Taiwan receives about 30 natural gas carriers each month, including about 10 from the Middle East, and authorities will seek alternative gas sources if circumstances change, Kung said.

The government has prepared three measures, including coordinating with the United States and Australia to move forward delivery of long-term contracted gas shipments to April.

Another option is to coordinate shipment scheduling with neighboring countries such as Japan and South Korea, though this could be relatively difficult because nations are competing to purchase gas supplies, he added.

Taiwan may also purchase gas on the spot market depending on market conditions, with daily meetings assessing whether it is "worth purchasing," Kung said, adding that Taiwan already has mechanisms to help control the impact of rising international oil prices.

Electricity price adjustments must ultimately be decided by the electricity rate review committee, Kung said.

State-owned enterprises also have a responsibility to stabilize prices, meaning prices will not fully reflect market fluctuations, he added.

Price coordination will be handled through a liaison mechanism between CPC Corp. and Taiwan Power Co., Kung said.