Trump says Taiwan agrees to buy 30% of Alaska LNG output
US President Donald Trump said Taiwan has agreed to buy 30 per cent of liquefied natural gas from an Alaska pipeline project, with Commerce Secretary Howard Lutnick adding that Taiwan committed to invest $4.4 billion. Taiwan's government did not confirm the deal, and details remain unclear.
US President Donald Trump said on Tuesday that Taiwan has agreed to buy 30 per cent of the liquefied natural gas (LNG) from a proposed pipeline project in Alaska, but the terms of the deal were not immediately clear. Trump made the remarks at a rally in the state organised by the Republican National Committee.
Commerce Secretary Howard Lutnick, who also appeared at the rally, said Taiwan has committed to investing US$4.4 billion in the development of the pipeline. Taiwan's economy ministry, which oversees energy policy, had no immediate comment.
Asked about Trump's comments, 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 remarks 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.
Taiwan President Lai Ching-te said at the time that the investment would ensure the island's energy security. Trump's comments did not make it clear whether a final deal had been signed.
Last year, Taiwan Presidential Office Secretary-General Pan Men-an visited the site of the proposed LNG project in Alaska, which the Trump administration has been promoting to Asian allies as a supply option. If built, the Alaska LNG project will export up to 20 million tons of the superchilled gas a year. So far it has 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 to secure financing.
The project 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. Trump said last month that South Korea had agreed to invest in the US$54 billion pipeline, but Seoul said it was not yet set in stone.