S. 2722: Taiwan Energy Security and Anti-Embargo Act of 2025

This bill, known as the Taiwan Energy Security and Anti-Embargo Act of 2025, aims to strengthen Taiwan's energy security and resilience against potential threats, particularly from authoritarian regimes. The legislation outlines several key components:

Key Findings

The bill begins with findings that underscore Taiwan's importance as a democratic partner in the Indo-Pacific region and highlights the need for diversified and reliable energy sources to reduce Taiwan's vulnerabilities to external coercion or attacks. It emphasizes the United States' capabilities in energy production, particularly liquefied natural gas (LNG), and the importance of enhancing U.S.-Taiwan economic and security ties through energy cooperation.

Promotion of LNG Exports to Taiwan

The bill directs the Secretary of State, along with the Secretaries of Energy and Commerce, to prioritize increasing LNG exports to Taiwan. Specific tasks include:

• Engaging with U.S. LNG producers and exporters to identify barriers to export.
• Facilitating coordination between U.S. businesses and partners in Taiwan.
• Providing diplomatic and technical support to expedite the development of LNG infrastructure in Taiwan.

Energy Infrastructure Resilience

The legislation proposes to enhance Taiwan's energy infrastructure resilience through various means, including:

• Cooperation with Taiwan's government bodies to build capacity for improving energy infrastructure and cybersecurity.
• Establishing a joint U.S.-Taiwan Energy Security Center to foster collaboration on energy security research and initiatives.
• Providing technical assistance for capacity building as well as conducting training exercises focused on critical energy infrastructure protection.

Nuclear Energy Considerations

The bill underlines the importance of nuclear energy as a stable and clean energy source. It suggests that Taiwan evaluate the reactivation of its nuclear capabilities and explore new nuclear technologies. The provisions advocate for U.S. assistance in developing Taiwan's nuclear energy resources to enhance energy security.

Insurance for Transportation of Vital Goods

The bill also introduces measures to support insurance for vessels transporting critical goods to Taiwan and other strategic partners. The Secretary of Transportation would have the authority to provide insurance for these vessels to deter coercive maritime activities and ensure the delivery of vital energy and humanitarian supplies.

Reporting and Coordination

To ensure effective implementation, the bill requires annual reports from the Secretary of State and other relevant officials on the progress of the initiatives outlined, reporting on barriers, effectiveness, and recommendations for future cooperation.

Overall Objectives

The overarching goal of the bill is to enhance Taiwan's energy security, resilience, and independence from threats, making it a critical ally for the U.S. in the Indo-Pacific region while supporting the transition towards diverse energy sources.

Relevant Companies

• NEE - NextEra Energy: Could be impacted through increased demand for LNG and potential investments in energy infrastructure projects.
• DUK - Duke Energy: Might see opportunities for partnerships in energy resilience projects linked to Taiwan.
• EXC - Exelon Corporation: Engagement in nuclear energy discussions and potential technology collaborations related to Taiwan's nuclear capabilities.