Taiwan's CPC is ready to diversify its crude imports in the event that Hormuz reopens

CPC, Taiwan's state-owned energy company, said on Wednesday that it was monitoring developments in?Middle East. It will be prepared to import more crude oil and liquefied gas if the Strait of Hormuz opens again.

Details are still to be released, but the United States and Iran have signed a Memorandum of Understanding this week in order to end the Middle East conflict. The interim agreement extends the 'tense ceasefire' announced in April for another 60 days, allowing warring countries to negotiate a permanent peace.

CPC has said that it has spoken to companies whose cargoes are stranded on the Gulf coast. These companies said they will continue to monitor the situation as it is uncertain.

CPC released a statement to the media saying that "currently, national petroleum inventories are high."

CPC has said that if the Strait of Hormuz is reopened, it will designate loading port locations within the Gulf in July and August. This will allow them to obtain a wider range of crudes such as heavier grades and those with higher sulphur contents, and to produce more bitumen, sulphur, and?meet? domestic demand.

CPC is also considering importing LNG from Qatar. This would arrive in Taiwan as early as September, if the strait opens up again.

The company said that "CPC will continue to closely monitor the developments in the Middle East and flexibly and promptly adjust its oil-and-gas procurement plans if necessary."

Taiwan's Economy Ministry Energy Administration responded to a question about whether Taiwan would resume Iranian crude oil imports when the U.S. lifted sanctions. "Going forward based on the current situation in the Strait of Hormuz region, Taiwanese companies will evaluate energy?imports without being restricted to any particular country."

Taiwan imported Iranian crude for the last time in 2018. Reporting by Ben Blanchard, Writing by Florence Tan, Editing by Jacqueline Wong

(source: Reuters)