Taiwan and Trump confirm plans for Alaska LNG cooperation

Taiwan announced on Wednesday its intention to invest up to US$4.4 billion in the Alaska LNG project. US President Donald Trump had previously disclosed Taiwan's involvement in the pipeline set to be built. Taiwan relies on nearly all its energy needs and has been striving to strengthen its ties with the United States, as China asserts its sovereignty over the island.

According to the Ministry of Economic Affairs, the partnership will entail Taiwan's annual procurement of six million metric tons of Alaska LNG upon production commencement and participation in project development, with an estimated investment of up to US$4.4 billion. If the project advances as per the planned schedule, it could start supplementing domestic natural gas supplies as early as 2032.

This announcement came shortly after Trump stated at a rally in Wasilla, Alaska, that Taiwan would purchase 30 percent of the pipeline's output over the next two decades and invest US$4.4 billion into the project. Taiwan's energy supply has been diverse in recent times, with Australia replacing Qatar as its primary LNG supplier, accounting for 34.8 percent of imports, followed by Qatar at 10.7 percent, and the United States contributing 24.5 percent.

The government's state-owned energy company, CPC Corporation, has acknowledged Taiwan's plan to procure LNG and secure upstream investment rights to ensure a stable energy supply for the future. Premier Cho Jung-tai emphasized the government's commitment to the project's stability and resilience, acknowledging it as a long-term endeavor.

The proposed pipeline, stretching 1,300 kilometers (800 miles), will transport natural gas from Alaska's substantial reserves to the southern region for liquefaction. The pipeline, backed by the US firm Glenfarne and the state of Alaska, will face technical challenges and is not anticipated to become operational before 2030. Local Alaska leaders have advocated for the pipeline for years, despite high costs and concerns about its economic viability.

Once operational, the LNG produced will be transported to Asia, its primary market, via tanker ships, taking a relatively short seven to nine days across the Pacific Ocean.