BY MFANUFIKILE KHATHWANE
MBABANE- Taiwan’s assurance that its oil and gas supplies will remain stable through September has further highlighted the importance of Eswatini’s ongoing strategic fuel reserve project at Phuzamoya.
The development comes at a time when global energy markets continue facing uncertainty and disruptions, with major international oil and gas suppliers reportedly issuing force majeure notices in recent months.
Taiwan Vice Economy Minister Lai Chien-hsin recently stated in an interview aired on May 6, 2026, on TaiwanPlus News that despite global pressures affecting energy supply chains, Taiwan’s oil and gas supply would remain stable through August and September.
He further revealed that Taiwan’s state-owned gas company was finalising oil purchase plans ahead of the winter season to ensure continued energy stability.
Taiwan maintains strict legal and strategic reserves for both oil and gas to ensure domestic stability, particularly during global energy crises or regional tensions.
The announcement is being viewed as another indication of the importance of maintaining strategic fuel reserves, particularly for smaller economies vulnerable to global supply disruptions.
Eswatini is currently constructing an 80 million-litre strategic fuel reserve facility at Phuzamoya under a partnership with the Republic of China (Taiwan).
The E5.2 billion project is designed to strengthen the Kingdom’s energy security by creating a 60-day fuel buffer capable of cushioning the country against sudden international fuel shortages and price shocks.
Construction at the site is reportedly progressing well and ahead of the project’s 36-month implementation timeline, with completion expected between 2028 and 2029.
Major preliminary works on the 25-hectare site, including fencing, topsoil stripping and borehole drilling, were completed in late 2025.
Excavation for the first four fuel storage tanks has already been completed, while phase two of foundation digging is currently underway.
Once complete, the facility will store 40 million litres of petrol and 40 million litres of diesel.
The project also includes a dedicated rail siding and truck gantries aimed at improving fuel transportation and strengthening logistics capacity.
Taiwan remains the Kingdom’s main technical and financial partner in the initiative through its Diplomatic Allies Prosperity Project.
Taiwan CECI Engineering Consultants is responsible for project management and oversight, while construction was awarded to Taiwan’s Overseas Investment & Development Corporation (OIDC) and Overseas Electrical Engineering Company (OEEC).
During a visit to Eswatini on May 6, 2026, Taiwan President Lai Ching-te said the Phuzamoya facility had the potential to serve as a regional logistics hub capable of supporting neighbouring countries during global energy crises.
The reserve facility also forms part of broader efforts to strengthen Eswatini’s economic resilience, industrial growth and long-term energy sustainability.
The project is expected to integrate locally produced bioethanol from Eswatini’s sugar industry as part of efforts to promote renewable energy while reducing long-term dependence on imported fuel products.
Taiwan’s ability to maintain stable fuel supplies despite global disruptions demonstrates the strategic value of reserve infrastructure and reinforces the significance of Eswatini’s investment in long-term energy security.
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(Courtesy Pic)
