Taiwan close to record deal with Alaska for 6 million tons of LNG: Governor

Washington/Taipei, Aug. 4 (CNA) Taiwan and Alaska are close to finalizing a deal for Taiwan to purchase 6 million tons of liquefied natural gas (LNG), which would mark the largest such sale in Alaska's history, according to the state's governor.

"It's moving to an absolute solid offtake with Taiwan of 6 million tons of gas... Now that 6 million tons from Taiwan is the largest offtake in LNG history in terms of sales," Alaska Governor Mike Dunleavy said at a media event on July 29.

The purchase would account for about 30 percent of the Alaska LNG Project's planned annual output of 20 million tons. The US$44 billion project involves treating gas on the North Slope, transporting it via a 1,300-kilometer pipeline to Nikiski in southcentral Alaska, and then liquefying it for export.

The Republican governor made the remark in response to a question about whether U.S. tariff concessions could depend on cooperation with the LNG project. "I think those discussions are happening in [Washington] DC with these tariff and trade talks and energy talks. I think those discussions are happening right now," he said.

Dunleavy said Thailand is also expected to sign a Heads of Agreement for 2 million tons and called on South Korea and other U.S. trade partners in Asia to join the project. "It's a tremendous opportunity to not only buy gas from, but to invest in [Alaska]," he said.

The Alaska LNG talks come amid broader trade tensions between Taiwan and the U.S. On July 31, the White House announced a 20 percent tariff on Taiwanese goods imported into the U.S. starting Aug. 7 -- compared to a 15 percent levy on imports from Japan and South Korea.

President Lai Ching-te (賴清德) called the figure "tentative" and said Taiwan's negotiating team is working to secure a more favorable deal in final talks with Washington.

LNG exports under the Alaska project are scheduled to begin in 2030 or 2031, Dunleavy said.

The U.S. currently supplies 10 percent of Taiwan's LNG, making it the country's third-largest source after Australia and Qatar, according to the Energy Administration.

In February, Republican Senator Dan Sullivan said the Alaska LNG deal carries strategic defense value for Taiwan, Japan and South Korea, which are increasingly reliant on Qatari gas.

Unlike the Qatar regime, which is subject to China's direction and may cut its LNG supply to these countries, the U.S. is not listening to you, China, he said.

He also said U.S. LNG shipments would likely remain unaffected in the event of a blockade of Taiwan -- a tacit reference to growing Chinese military pressure in the region.

Dunleavy's recent remarks echoed those made during his late-March visit to Taiwan, where he met President Lai twice. He raised the topic again in mid-May, but on May 22, Taiwan's Economic Minister Kuo Jyh-huei (郭智輝) said no formal commitment had been made, although CPC Corp. had signed letters of intent to invest.

As of press time, the Taiwanese government had not commented on Dunleavy's latest remarks, and no official deal has been announced.