Taipei: Taiwan has arranged for about 8 million barrels of crude oil to be shipped from the Red Sea in April to bypass the Strait of Hormuz and ease domestic supply pressures, CPC Corp., Taiwan announced. This quantity represents about a third of Taiwan's monthly oil requirements.

According to Focus Taiwan, CPC President J.Z. Fang informed the Legislature that the state-run oil company has collaborated with Middle Eastern suppliers to secure alternative routes aside from the Strait of Hormuz, a critical passageway through which approximately 20 percent of the world's oil and liquefied natural gas are transported. Saudi Arabian suppliers have confirmed their ability to transport crude oil to the Red Sea via pipelines. Meanwhile, suppliers in the United Arab Emirates are considering routing oil through pipelines to Oman for sea shipments.

One tanker carrying about 2 million barrels is already loaded and docked in the Persian Gulf, awaiting departure due to the ongoing conflict. To mitigate risks, CPC is diversifying its crude oil sources by exploring supplies from West Africa and assessing imports from Southeast Asia, Australia, and the United States.

Economic Affairs Minister Kung Ming-hsin revealed that the government plans to provide financial support to help CPC address its mounting losses, as the company has been forced to absorb increases in crude oil prices to stabilize fuel prices. The recent conflict involving the U.S. and Israel against Iran has further exacerbated these financial challenges.

CPC has incurred losses of NT$9 billion (US$281.5 million) to buffer the impact of rising crude oil prices triggered by the war, increasing its accumulated losses to NT$79.2 billion as of March 31, according to the Ministry of Economic Affairs (MOEA). The company's net worth stands at only NT$86.1 billion, prompting lawmakers to question Kung on plans to bolster CPC's finances.

Kung outlined three strategies to support CPC financially, including increasing the company's capital by NT$350 billion over four years, with NT$168.7 billion already included in the government's 2027 fiscal budget request. Additionally, the MOEA will assist CPC in securing NT$300 billion in new financing to improve cash flow and refinance debt. The third strategy involves providing subsidies to CPC, although the subsidy amount and fund source are still under discussion.