Taiwan has announced plans to purchase 6 million metric tons of liquefied natural gas (LNG) annually from a major U.S. project in Alaska, pending its commencement. The deal, involving an estimated investment of up to $4.4 billion by Taiwan's state-owned CPC Corporation, was highlighted by former U.S. President Donald Trump as "one of the biggest deals ever made." The agreement follows a letter of intent signed in March 2025, with the project expected to begin supplying Taiwan's natural gas needs by 2032.
The deal underscores the deepening economic ties between Taiwan and the United States, particularly in the energy sector. Trump emphasized that Taiwan's commitment to buy 30% of the gas produced by the 807-mile pipeline for two decades would ensure the project's success. The pipeline is designed to connect Alaska’s North Slope to an LNG export terminal in the southern part of the state.
Taiwan's Ministry of Economic Affairs described the cooperation as mutually beneficial, aimed at diversifying its natural gas supply and enhancing flexibility. The ministry emphasized that the agreement aligns with the principles of mutual benefit and professionalism, with further negotiations to determine specific investment arrangements and terms. The deal comes as Taiwan awaits a $14 billion arms sales package from the U.S., highlighting the strategic importance of their partnership amidst growing military threats from China.
China has consistently opposed arms sales to Taiwan and criticized the island's economic exchanges with the U.S. Chinese officials reiterated that any external exchanges by Taiwan must adhere to the "one-China" principle, warning against attempts to pursue "Taiwan independence" under the guise of economic cooperation. The tensions reflect the broader geopolitical dynamics in the region, where Taiwan's relations with the U.S. and China remain a critical focal point.