Alaska LNG deal may boost Taiwan's energy resilience: U.S. scholar

Washington, Oct. 14 (CNA) A proposed deal for Taiwan to purchase liquefied natural gas (LNG) from an Alaska pipeline project could strengthen Taiwan's energy resilience and narrow its trade surplus with the United States, an American scholar said Wednesday.

Michael Cunningham, a senior fellow at the Stimson Center, told CNA that the deal could increase Taiwan's importance as a market for U.S. exports, giving Washington greater incentive to ensure Taiwan's security.

"Taiwan will remain critically important into the 2050s," he said, adding that exports from the project are not expected to begin until 2031.

"If this deal materializes, it will help strengthen Taiwan's energy resilience" and reduce its trade surplus with the U.S. -- a priority for Washington, Cunningham said in an email response to CNA's request for his views on the issue.

In 2025, Taiwan recorded a trade surplus of approximately US$150.1 billion with the U.S., according to Ministry of Finance statistics.

On Tuesday, U.S. President Donald Trump said at a rally in Alaska that Taiwan had agreed to purchase 30 percent of the natural gas output from the planned Alaska LNG pipeline project over 20 years and invest an additional US$4.4 billion in the project. He later reiterated the claim in a post on his Truth Social platform.

Following his announcement, Taiwan's Ministry of Economic Affairs (MOEA) on Wednesday confirmed that the state-owned CPC Corp., Taiwan will invest up to US$4.4 billion in the Alaska project and purchase 6 million metric tons of LNG annually once production begins.

The long-term purchase and investment plan will diversify Taiwan's natural gas supplies and strengthen its energy resilience, the MOEA said.

The Alaska LNG project would also reduce transportation and geopolitical risks by sending shipments to Taiwan directly across the Pacific, the ministry said.

If the project proceeds as planned, it could begin contributing to Taiwan's domestic natural gas supply as early as 2032, according to the MOEA.

Riley Walters, a senior fellow at the Hudson Institute in Washington, said that Taiwan's commitment to the Alaska LNG project would help to ensure the pipeline's profitability.

The deal would also contribute to Taiwan's broader investment commitments to the U.S., Walters said, noting that Taiwan still needs to secure US$200 billion in credit to complete its strategic investment agreement with Washington.