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, signed by state-owned CPC Corp. in March 2025, follows over a year of negotiations and could begin supplying Taiwan as early as 2032. The agreement aims to diversify Taiwan's energy supply while strengthening economic ties with the U.S., which remains a key ally amid rising tensions with China.
U.S. President Donald Trump celebrated the agreement at a political rally in Alaska, calling it "one of the biggest deals ever made." He emphasized that Taiwan's commitment to buy 30% of the pipeline's output for 20 years guarantees the project's success. However, Taiwan's official statement did not confirm the 30% figure or the 20-year duration, leaving some details open to negotiation.
The deal comes as Taiwan awaits a $14 billion arms package from the U.S., highlighting the island's reliance on American support in the face of Chinese military threats. While Trump has promoted similar investments from South Korea, Taiwanese officials stress that the LNG cooperation will proceed on mutually beneficial terms, with further negotiations determining investment specifics.