US President Donald Trump says Taiwan has agreed to purchase 30% of the liquefied natural gas (LNG) produced by a proposed Alaska pipeline project over the next 20 years, in a move that could strengthen US energy exports and support the multibillion-dollar development.
Trump made the announcement at a campaign rally in Wasilla, Alaska, on Tuesday, October 13, describing the commitment as a major step towards ensuring the project’s commercial success. US Commerce Secretary Howard Lutnick said Taiwan had also committed up to $4.4 billion towards the development.
Taiwan Confirms Progress in Negotiations
Taiwan’s Ministry of Economic Affairs confirmed on Wednesday that state-owned energy company CPC Corporation had made significant progress in negotiations with the project’s developer following approximately 18 months of discussions.
Under the proposed arrangement, CPC plans to purchase six million metric tonnes of LNG annually once production begins. The company is also considering an investment of up to $4.4 billion, although the final investment structure, ownership stake and contractual terms remain subject to further negotiations.
Taiwan has not confirmed that a binding 20-year purchase agreement has been signed, meaning important details of Trump’s announcement remain unresolved.
A Multibillion-Dollar Energy Project
The Alaska LNG project is designed to transport natural gas from Alaska’s North Slope through a pipeline to a proposed export terminal on the state’s southern coast. If completed, it could export approximately 20 million metric tonnes of LNG annually.
The project is expected to improve access to Asian markets, including Taiwan, while potentially reducing shipping times by providing a more direct route for American gas exports.
However, the development faces major financial and logistical challenges because of its remote location, extensive infrastructure requirements and high construction costs. Developers are seeking firm, long-term purchase commitments to help secure financing.
The project is targeting initial LNG exports in 2031, with deliveries to Taiwan potentially beginning in 2032 if construction and negotiations proceed as planned.
Energy Security and US-Taiwan Relations
Taiwan depends heavily on imported energy, making the diversification of natural gas supplies an important priority. Increased purchases from the United States could strengthen Taiwan’s energy security while deepening its economic relationship with Washington.
The proposed deal also aligns with the Trump administration’s efforts to expand American energy exports and address trade imbalances with international partners.
Nevertheless, the project’s success will depend on finalising binding contracts, securing sufficient financing and completing the extensive infrastructure needed to bring Alaskan gas to international markets.
For now, Taiwan’s confirmation of progress in negotiations marks an important development, but the final terms and implementation of the proposed agreement remain to be established.
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