Taiwan has announced plans to purchase 6 million metric tons of liquefied natural gas (LNG) annually from a major U.S. project in Alaska, with a potential investment of up to $4.4 billion. The deal, described by former U.S. President Donald Trump as one of the biggest ever made, involves Taiwan’s state-owned CPC Corporation signing a letter of intent in March 2025. The project, an 807-mile pipeline connecting Alaska’s North Slope to an LNG export terminal, is expected to start supplying Taiwan by 2032 at the earliest.
The agreement comes as Taiwan seeks to diversify its energy supply and strengthen ties with the United States, its main informal supporter amid rising military threats from China. Trump highlighted the deal at a political rally, stating that Taiwan had agreed to buy 30% of the gas for the next 20 years, ensuring the project’s success. However, Taiwan’s Ministry of Economic Affairs did not specify the duration of its commitment.
China has reacted cautiously to the deal, emphasizing that Taiwan’s external exchanges must adhere to the “one-China” principle. Chinese officials have criticized Taiwan’s ruling Democratic Progressive Party for pursuing independence under the guise of economic cooperation. The deal also follows recent U.S. arms sales to Taiwan, which China has pressed Trump to halt.
The cooperation between Taiwan and the U.S. on this project is framed as mutually beneficial, with both sides negotiating specific investment arrangements and shareholding ratios. The deal underscores Taiwan’s efforts to secure long-term energy sources while deepening its strategic partnership with the United States.