Taiwan Advances on Alaska LNG Agreement Following Trump’s Announcement of 30% Output Purchase
Taiwan is advancing negotiations to purchase liquefied natural gas (LNG) from Alaska, with plans to invest up to $4.4 billion in the project. This announcement follows U.S. President Donald Trump’s statement that Taiwan has agreed to buy 30% of the proposed project’s output. Taiwan’s economy ministry confirmed that state-owned energy company CPC Corp has made significant progress in discussions with the project developer after nearly 18 months of negotiations.
CPC Corp plans to purchase 6 million metric tonnes of LNG annually once production begins, in accordance with a letter of intent signed last year. The company will also take part in the project’s development, with the investment expected to reach $4.4 billion. Specific investment arrangements, equity stakes, and related terms will be determined through further negotiations and commercial contracts. However, the final investment terms and purchase commitments are still subject to additional negotiations.
Taiwan aims to increase its purchases of U.S. natural gas to reduce reliance on other suppliers. Earlier this year, officials indicated that U.S. gas would account for about one-third of the island’s imported supply. The proposed Alaska LNG project is designed to export up to 20 million metric tonnes of LNG annually. While the project has been discussed for decades, its commercial viability remains a concern for some industry experts. If completed, the pipeline would provide a direct route for U.S. LNG to Asian markets, including Taiwan, potentially reducing shipping times and costs.
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