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

Taiwan said on Wednesday it was making progress in talks to buy liquefied natural gas from Alaska LNG and would invest $4.4 billion in the project after US President Donald Trump told a rally in the state that ‌Taipei would buy 30% of its output. Taiwan's economy ministry said state-owned energy firm CPC Corp has made significant progress with the project developer after nearly a year and a half of negotiations and evaluation.

Alaska LNG, estimated to cost $44.5 billion to $54.5 billion, would produce 20 million metric tons annually and has been discussed for decades. Many in the industry are skeptical of its commercial viability because it requires ‌a lengthy pipeline to transport gas from Alaska's remote North Slope and significant capital, which analysts say would cost more than double a comparable US Gulf Coast plant. Under the plan, CPC would ‌buy 6 million tons per yearfrom Alaska LNG once production begins, in line with a letter of intent signed last year, and would invest up to $4.4 billion in the project's development, the ministry said.

"Specific investment arrangements, equity stakes and related terms will be determined through subsequent negotiations and commercial contract procedures," it said. The ministry did not say whether a binding sale-and-purchase agreement had been signed.

Trump was in Alaska campaigning for Republican Senator Dan Sullivan, who is in a tight race ⁠against Democratic candidate Mary ​Peltola ahead of the November 3 congressional elections. ⁠In a follow-up Truth Social post on Wednesday, Trump called the Alaska LNGpipeline a "U.S. Federal Government Project" and said that Taiwan's commitment to buy the project's output over the next 20 years would amount to between $70 billion and $80 billion. Taiwan officials said ⁠in February they would ramp up purchases of US natural gas to about a third of the island's imported supply this year and reduce purchases from other countries, as part of an effort to reduce a yawning ​trade surplus that has angered Washington.

PUSH TO SUPPLY ASIA Last year, Taiwan Presidential Office Secretary-General Pan Men-an visited the site of the proposed LNG project in Alaska that the Trump administration ⁠has been pushing hard to allies in Asia as a supply option.

So far, Alaska LNG 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 for the project. The project would give US-made liquefied natural gas direct access to Asian markets, including Taiwan, without going through the Panama Canal, reducing transit time and costs.

The project's developers aim to take a final investment decision on the 800-mile (1,287-km) pipeline in 2026, followed by the export facility in 2027, with first LNG exports targeted for 2031. Trump ⁠said last month that South Korea had agreed to invest in the Alaska LNG project, but Seoul said it was not yet set in stone.

Taiwan was the No.5 LNG importer last ⁠year behind China, Japan, South Korea and India, shipping ⁠in 23.8 million tons of the super-chilled fuel, mostly from Australia and Qatar, according to Kpler data. Taiwan's economy ministry said on Wednesday that if the project proceeded on schedule, it could begin supplying additional natural gas to Taiwan as early as 2032.