Taiwan plans to buy more U.S. natural gas to cut trade surplus: Official

Taipei, Feb. 9 (CNA) Taiwan is preparing to expand purchases of United States natural gas to reduce its trade surplus with the country in an attempt to avert potentially higher tariffs imposed by President Donald Trump's administration on Taiwanese imports, according to an economics official.

The Ministry of Economic Affairs (MOEA) and state-run CPC Corp., Taiwan are taking the step to buy more natural gas in the wake of Trump declaring a plan to vastly expand oil and gas production to export American energy around the world and slash the country's international trade deficit, the official said.

Trump has also said he will announce his plan to impose tariffs on imports from many countries in the near future, reportedly targeting trade partners including China, Taiwan and India.

When Trump met with Japanese Prime Minister Shigeru Ishiba at the White House on Friday, the U.S. president pushed Japan to invest in U.S. energy, while Ishiba pledged to boost Japan's purchases of U.S.-produced liquefied natural gas, according to international news reports.

Taiwan's trade surplus with the U.S. surged to a record high of US$64.88 billion last year, data compiled by the Finance Ministry showed.

When asked how to lower Taiwan's trade surplus with the U.S., Economics Minister Kuo Jyh-huei (郭智輝) said Saturday that the government will refer to Trump's action on his planned tariffs on Mexico, Canada and Japan, and is developing countermeasures to protect Taiwan's interests.

Trump on Monday agreed to pause imposing tariffs on Canada and Mexico for 30 days after the two countries undertook to take steps to alleviate concerns over border security and drug trafficking.

In addition, Japan has avoided U.S. tariffs for now as Trump and Ishiba pledged to strengthen bilateral ties during their meeting and Ishiba told public broadcaster NHK Sunday Trump had "recognized" Japan's huge investment in the U.S.

Kuo said Taiwan could follow Japan's example and import more U.S. energy.

Judging by the Trump-Ishiba meeting, Trump is determined to push the administration's energy policy and hopes to meet Washington's needs in this area, Kuo added.

In fact, as an importer of energy, Taiwan has begun planning to expand its purchases of U.S. natural gas based on the principle of strengthening gas source diversification, the economics official said.

CPC is currently negotiating purchase details with an Alaska-based natural gas developer, in the hope of reducing the trade surplus with the U.S., according to the official.

CPC's annual natural gas demand is approximately 20 million metric tons, with procurement sources totaling 14 countries (out of 20 global exporting countries), with Australia, Qatar and the U.S. the top three suppliers.

Among them, the U.S. accounts for about 10 percent of supply, with a total of three long-term contracts with CPC, each valid for 20-25 years. CPC estimates that by 2030, Taiwan's annual natural gas demand will increase by millions of metric tons, according to company data.