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Geopolitics

Trump says Taiwan agrees to buy 30% of gas from Alaska LNG project

President claims deal guarantees success of proposed $50 billion pipeline, though terms remain unclear

By LineZotpaper
Published
Updated
Read Time2 min
Sources2 outlets
US President Donald Trump announced on Tuesday that Taiwan has agreed to purchase 30% of the gas from the proposed Alaska LNG project for the next 20 years, a move he said would ensure the pipeline's viability. The announcement came during a campaign rally in Alaska, but the specific terms of the agreement were not immediately clear.

Speaking at a rally in Wasilla, Alaska, Trump stated: "Taiwan has just agreed to buy 30% of the gas coming off the pipeline for the next 20 years. That guarantees a success." The remarks follow earlier claims by Trump that South Korea had agreed to join the $50 billion Alaska LNG project, though Seoul has maintained that its participation has not been finalized. Trump added that $4.4 billion would also be invested in the project, on top of $50 billion already committed by South Korea.

Last year, Taiwan's state-owned energy company CPC Corp reportedly reached an agreement with Alaska Gasline Development Corp to purchase LNG and invest in the pipeline. Taiwan, home to semiconductor giant TSMC, relies on imports for more than 90% of its energy supply. The island's economic affairs ministry has projected average electricity demand growth of about 2.5% a year through 2035, the second-highest forecast in its history, driven partly by AI-related growth.

Glenfarne, the project's developer, told the US government this month that it aims to deliver first gas in 2029. Trump has stepped up pressure on South Korea over its participation, warning of potential tariff increases if Seoul fails to sign soon. The White House, Taiwan's energy ministry, and CPC Corp did not immediately respond to requests for comment.

Beijing considers Taiwan part of its territory, and the island is still awaiting major new arms sales from the US.

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Analysis

Why This Matters

  • The Alaska LNG project represents a major US energy export initiative, and securing buyers like Taiwan and potentially South Korea is critical to its financial viability.
  • Taiwan's energy security is increasingly tied to geopolitical dynamics, as the island faces rising electricity demand from semiconductor and AI industries while relying heavily on imports.
  • The deal could strain US-China relations, as Beijing views any Taiwan-US engagement as a challenge to its sovereignty claims.

Background

Taiwan depends on imports for more than 90% of its energy supply. The island's demand for electricity is growing faster than that of Japan and South Korea, with projections of 2.5% annual increases through 2035. The Alaska LNG project, proposed at a cost of $50 billion, aims to export liquefied natural gas from Alaska's North Slope. Developer Glenfarne expects first gas delivery in 2029. Trump has made the project a priority and has sought commitments from Asian allies, but negotiations with South Korea remain unresolved.

Key Perspectives

Taiwan: The agreement provides a long-term energy supply from a stable source, helping meet growing demand from industries including TSMC. However, the terms of the deal and its impact on energy prices are unclear. United States: The deal bolsters a major infrastructure project and strengthens economic ties with Taiwan, a key ally in Asia. Trump has used the prospect of tariffs to pressure South Korea into finalising its participation. Beijing: China considers Taiwan part of its territory and opposes any separate international agreements by the island, especially those involving the US. The deal may be seen as provocation.

What to Watch

  • Finalisation of the agreement between Taiwan's CPC Corp and Alaska Gasline Development Corp, including specific volumes and pricing.
  • South Korea's decision on its proposed $50 billion investment in the project, and whether Trump escalates tariff threats.
  • The status of US-Taiwan arms sales, which Taiwan is still awaiting, and any Chinese response to the energy deal.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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