Taiwan cites progress on Alaska LNG after Trump says it will buy 30% of output

Taiwan announced on Wednesday that negotiations with Alaska to procure liquefied natural gas (LNG) are progressing, and the island plans to invest $4.4 billion in the project. This comes after US President Donald Trump pledged at an Alaska rally that Taiwan would secure 30% of the output. Taiwan's economy ministry disclosed that the state-owned energy firm CPC Corp had made significant strides in the nearly 18-month-long talks and evaluations.

Alaska LNG, intended to generate 20 million metric tons of gas annually, has been under discussion for years. However, industry experts remain skeptical due to the lengthy pipeline required and the substantial capital costs, which are more than double those of comparable US Gulf Coast plants. Under the agreement, CPC would acquire 6 million tons of Alaska LNG per year, commencing with production, as per a letter of intent signed last year.

The ministry further stated that investment specifics, equity shares, and associated terms will be finalized through further negotiations and commercial contract procedures. It remained unclear if a binding sale-and-purchase agreement had been signed.

In February, Taiwan had expressed its intention to increase purchases of US natural gas to approximately one-third of its imported supply this year, while decreasing purchases from other nations to address a substantial trade surplus that has strained relations with Washington. Last year, Taiwan's Presidential Office Secretary-General Pan Men-an visited the Alaska LNG project site, which the Trump administration has been actively promoting to Asian allies as an alternative supply option.

To date, Alaska LNG has secured agreements with 13 million tons of gas per year from Asian buyers, including TotalEnergies, a French major. The project requires another 3 million tons of agreements to secure financing.

The pipeline, spanning 800 miles (1,287 km), and the export facility are expected to be operational by 2027, with the first LNG exports anticipated for 2031. Trump had mentioned earlier this month that South Korea had committed to investing in the $54 billion Alaska LNG pipeline, although Seoul has not yet confirmed the decision.

Taiwan ranks fifth among LNG importers, trailing behind China, Japan, South Korea, and India, having imported 23.8 million metric tons of the super-chilled fuel, primarily from Australia and Qatar, according to Kpler data. If the project proceeds as planned, Taiwan could commence supplying additional natural gas by 2032.