Taiwan agrees to buy 30% of LNG from Alaska pipeline project, Trump says
US President Donald Trump announced at a rally in Alaska that Taiwan has agreed to purchase 30 per cent of the liquefied natural gas from the proposed Alaska LNG pipeline project. Commerce Secretary Howard Lutnick added that Taiwan has committed to investing US$4.4 billion in the development, though
WASILLA, Alaska: US President Donald Trump told a rally in Alaska on Tuesday (Oct 13) that Taiwan has agreed to buy 30 per cent of the liquefied natural gas from a pipeline project in the state. Commerce Secretary Howard Lutnick, who also appeared at the event organised by the Republican National Committee, said Taiwan has committed to investing US$4.4 billion in the development of the pipeline. The deal terms were not immediately clear, and Taiwan's economy ministry, which oversees energy policy, had no immediate comment.
When asked about Trump's remarks, Taiwan Premier Cho Jung-tai told reporters that the government's job is to "stabilise the entire energy supply and build its resilience, like governments everywhere." The comments come after Taiwan officials said in February they would ramp up purchases of US natural gas to constitute about a third of the island's imported supply this year, and reduce purchases from other countries.
Taiwan state energy firm CPC Corp signed an agreement with Alaska Gasline Development Corp last year to buy LNG and invest in the pipeline project. Alaska's governor said last year that Taiwan signed a letter of intent to buy 6 million metric tons of LNG per annum from the project. The investment would ensure Taiwan's energy security, President Lai Ching-te said at the time, though Trump's comments did not make clear whether a final deal had been signed.
The proposed Alaska LNG project, if built, will export up to 20 million tons of the superchilled gas a year. It has so far lined up agreements covering 13 million tons a year from buyers in Asia and French major TotalEnergies. It needs agreements for another 3 million tons and must turn them into binding deals in order to secure financing for the project. The pipeline would open direct access for US-made LNG to Asian markets including Taiwan without having to go through the Panama Canal or around the Horn of Africa, reducing transit time and costs.
Taiwan has pledged to massively ramp up its purchases from the United States, including energy, to reduce a yawning trade surplus that has angered Washington. Last month, Trump said South Korea had agreed to invest in the US$54 billion pipeline for the Alaska LNG project, but Seoul said it was not yet set in stone.
