Taiwan plans to purchase 6 million metric tons of liquefied natural gas (LNG) annually from a U.S. project in Alaska, potentially investing up to $4.4 billion. The deal, announced by Taiwan's Ministry of Economic Affairs, follows a letter of intent signed in March 2025 between state-owned CPC Corporation and the U.S. side. The project, an 807-mile pipeline connecting Alaska’s North Slope to an LNG export terminal, is expected to support Taiwan’s natural gas supply starting in 2032.
The agreement strengthens Taiwan-U.S. cooperation amid rising military threats from China, which views Taiwan as a breakaway province. U.S. President Donald Trump celebrated the deal as "one of the biggest ever made," highlighting Taiwan’s commitment to buy 30% of the gas for 20 years. However, Taiwan’s statement did not specify the deal’s duration.
Trump also referenced a $54 billion investment from South Korea in the same project, though South Korean officials cautioned they needed to assess its commercial viability. The deal comes as Taiwan awaits a $14 billion arms sales package from the U.S., underscoring the island’s reliance on American support against Chinese pressure.
China has urged Trump to halt arms sales to Taiwan, following a stalled $14 billion package after his summit with Chinese leader Xi Jinping. Despite this, Washington approved another $11 billion package in December, further complicating relations between the U.S. and China.