Taiwan to Buy Alaskan LNG, Invest Billions in U.S. Project

Taiwan plans to purchase 6 million metric tons of liquefied natural gas annually from a U.S. project and could invest up to $4.4 billion in its development. The agreement, solidified through a letter of intent signed in March 2025 by state-owned CPC Corporation, marks a significant economic cooperation between Taiwan and the United States.

This move is seen as a strategic effort by Taiwan to diversify its natural gas supply, enhance energy flexibility, and strengthen ties with the U.S., its primary informal supporter and arms provider. The potential cooperation is occurring as Taiwan awaits a substantial $14 billion arms sales package from the U.S., a move that draws scrutiny from China, which views Taiwan as a breakaway province.

Former President Donald Trump, who previously promoted a $54 billion South Korean investment in the same Alaska pipeline project, hailed the Taiwan deal as "one of the biggest deals ever made." He stated that Taiwan would buy 30% of the gas from the pipeline for 20 years, a commitment not specified in Taiwan's official statement.

Taiwan's Ministry of Economic Affairs indicated that the natural gas project in Alaska has seen significant progress after more than a year of negotiations. The earliest expected start date for supplying Taiwan's energy needs is 2032. The ministry emphasized that the cooperation will be based on mutual benefit and professional principles, with CPC Corp continuing to coordinate with the U.S. side. Specific investment terms will be determined through subsequent commercial negotiations.

This economic engagement is particularly significant given the geopolitical context. China has been increasing military and diplomatic pressure on Taiwan. In the past, Trump has used arms sales to Taiwan as a "very good negotiating chip" with China. Washington approved previous arms packages to Taiwan, including an $11 billion package in December.

Taiwan and mainland China have been governed separately since 1949, following a civil war that led to the Communist Party's rule in Beijing and the Nationalist Party's retreat to Taiwan. The island has maintained its own government since that time.