Taipei:A proposed agreement for Taiwan to acquire liquefied natural gas (LNG) from an Alaska pipeline project is anticipated to strengthen Taiwan's energy resilience and decrease its trade surplus with the United States, according to an American scholar.
According to Focus Taiwan, Michael Cunningham, a senior fellow at the Stimson Center, highlighted that the deal could elevate Taiwan's status as a significant market for U.S. exports, thereby incentivizing Washington to prioritize Taiwan's security. He noted that this agreement, if realized, would bolster Taiwan's energy infrastructure and address the trade imbalance with the U.S., which is a priority for Washington.
In 2025, Taiwan's trade surplus with the U.S. was recorded at approximately US$150.1 billion. U.S. President Donald Trump announced that Taiwan has agreed to purchase 30 percent of the LNG output from the upcoming Alaska pipeline project over two decades and invest an additional US$4.4 billion in the initiative. Taiwan's Ministry of Economic Affairs (MOEA) confirmed that the state-owned CPC Corp., Taiwan will invest up to US$4.4 billion in the Alaska project and procure 6 million metric tons of LNG annually once production commences.
The MOEA stated that this long-term purchase and investment strategy will diversify Taiwan's natural gas resources and enhance its energy resilience. The project is also expected to mitigate transportation and geopolitical risks through direct Pacific shipments to Taiwan. If the project stays on schedule, it could start supplying Taiwan with natural gas by 2032.
Riley Walters, a senior fellow at the Hudson Institute, remarked that Taiwan's involvement in the Alaska LNG project is crucial for the pipeline's profitability. The deal aligns with Taiwan's broader investment goals in the U.S., where it is working to secure US$200 billion in credit to fulfill its strategic investment commitments with Washington.
