President Donald Trump says Taiwan will buy 30% of the planned output of the Alaska LNG project, a deal he values at $70 billion to $80 billion. Taipei confirms progress but not a binding contract, and the project still needs financing for its natural gas exports.
Trump told a rally in Alaska that Taiwan would buy 30% of the Alaska LNG project's output. In a Truth Social post on Wednesday, he said Taiwan had committed to purchasing that share for 20 years, alongside a $4.4 billion equity investment.
Taiwan confirms talks, not a signed contract
Taiwan's economy ministry said state-owned CPC Corp had made significant progress with the project developer after nearly a year and a half of negotiations and evaluation. Under the plan, CPC would buy 6 million tons per year once production begins and invest up to $4.4 billion in development.
However, the ministry did not say whether a binding sale-and-purchase agreement had been signed. Investment arrangements, equity stakes and commercial terms remain subject to further negotiations, according to Oilprice.com. If the project proceeds on schedule, deliveries could begin as early as 2032.
Alaska offers a route around Hormuz
The project, led by Glenfarne Group, would move gas through an approximately 800-mile pipeline from Alaska's North Slope to a liquefaction terminal on the state's southern coast, with planned export capacity of 20 million metric tons annually. Oilprice.com says the Iran war, which has disrupted LNG shipments through the Strait of Hormuz, has made that Pacific route more attractive to Asian buyers.
Reuters reports that Alaska LNG has lined up agreements covering 13 million tons a year. It needs agreements for another 3 million tons and must turn them into binding deals to secure financing.
Cost and South Korea cloud the outlook
Reuters puts the project's cost at $44.5 billion to $54.5 billion, and says analysts see it costing more than double a comparable US Gulf Coast plant. Many in the industry doubt its commercial viability.
Trump had also said South Korea would invest in the project, but Seoul said the commitment was not yet set in stone. The developers aim to take a final investment decision on the pipeline in 2026, with first LNG exports targeted for 2031.
Sources: Oilprice.com, Investing.com (Reuters)
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