'Making progress': Taiwan on Alaska LNG deal after Trump says it will buy 30% of output

Taiwan said on Wednesday it was making progress in negotiations to buy liquefied natural gas (LNG) from Alaska and planned to invest up to $4.4 billion in the project. The announcement came after US President Donald Trump said Taiwan had agreed to buy 30% of the proposed project's output.Taiwan's economy ministry said state-owned energy company CPC Corp had made significant progress with the project developer after nearly 18 months of negotiations and evaluation.Under the plan, CPC would purchase 6 million metric tonnes of LNG annually once production begins, in line with a letter of intent signed last year.The company would also participate in the project's development, with an estimated investment of up to $4.4 billion, the ministry said, Reuters reported."Specific investment arrangements, equity stakes and related terms will be determined through subsequent negotiations and commercial contract procedures," it added.However, the final investment terms and purchase commitments remain subject to further negotiations and commercial agreements.Taiwan has been looking to increase purchases of US natural gas and reduce its dependence on other suppliers. Earlier in February, officials said US gas would account for about one-third of the island's imported supply this year.The proposed Alaska LNG project is designed to export up to 20 million metric tonnes of LNG annually. The project has been discussed for decades, but its commercial viability remains a concern for some industry experts.If completed, the pipeline would provide a direct route for US LNG to Asian markets, including Taiwan, without requiring shipments to pass through the Panama Canal or travel around the Horn of Africa. This could reduce shipping times and costs.The move is also part of Taiwan's effort to narrow its large trade surplus with the United States, which has angered the Trump administration.CPC signed an agreement with the Alaska Gasline Development Corporation last year to buy LNG and invest in the project. Alaska's governor said in March 2025 that Taiwan had signed a letter of intent to purchase 6 million metric tonnes annually.Taiwan President Lai Ching-te had said the investment would help strengthen the island's energy security.Last year, Taiwan Presidential Office Secretary-General Pan Men-an also visited the proposed project site in Alaska as the Trump administration promoted the project to Asian allies.Trump at a rally in Alaska on Tuesday said that Taiwan had agreed to buy 30% of the project's output.US Commerce Secretary Howard Lutnick, who attended the event organised by the Republican National Committee, said Taiwan had committed $4.4 billion towards the pipeline's development.Taiwan Premier Cho Jung-tai, responding to Trump's remarks said the government's responsibility was to "stabilize the entire energy supply and build its resilience, like governments everywhere."The announcement did not establish whether a final, binding agreement had been signed. Taiwan's economy ministry said the investment arrangements and equity stakes would be settled through further negotiations.Last month, Trump said South Korea had agreed to invest in the Alaska LNG project, which he valued at $54 billion. Seoul, however, said the proposed investment had not yet been finalised.You use AI every day. Now get your AI Quotient. Take the AIQ test.