Taiwan's state oil company CPC is racing to replace a third of its natural gas supply knocked out by the Middle East war — a strain on Taiwan's power grid and CPC's finances, but so far the lights are staying on.

• Gas from the Middle East makes up 30% of Taiwan's supply, and 6 to 7 million tons were hit when the war flared up.
• Gas powers half of Taiwan's electricity, so a shortfall would mean blackouts for homes, factories, and the AI chip industry.
• Taiwan's storage tanks are small, so CPC cannot wait it out and must buy cargoes on the spot market and pull ship deliveries forward.
• Japan's JERA and Australian suppliers stepped in with extra shipments, and reserves are now 11 to 14 days, higher than before the war.
• Buying at panic prices and holding more inventory is pushing CPC deeper into the red, and it is asking the government for financial backing.

Outlook: Supply looks secure for now, but CPC's mounting losses mean higher energy costs or a taxpayer bailout are likely if the war drags on.