Key Takeaways
President Trump announced that Taiwan plans to buy 6 million metric tons of LNG annually from Alaska’s LNG project, bringing natural gas from the state’s North Slope to markets in the state and abroad.
Taiwan signed a letter of intent in March 2025 and will invest up to $4.4 billion in the major pipeline and LNG export project; however, the financial structure and ownership terms are still to be negotiated.
As an island country, Taiwan imports over 95% of its energy, and LNG makes up 23.6% of its total energy supply.
Shipping LNG directly across the Pacific from Alaska would offer an alternative to routes through the Panama Canal or around the Cape of Good Hope, reducing transit time and costs.
The deal would diversify the island’s LNG supplies, strengthen energy security, and deepen ties with the United States, which already supplies it with LNG.
It would also help meet Taiwan’s rapidly growing electricity demand driven by AI and chip manufacturing.
The project is nearing the critical mass needed to finalize financing and begin construction.
Taiwan plans to buy 6 million metric tons (almost 300 billion cubic feet) of liquefied natural gas annually from Alaska, consistent with a letter of intent signed in March 2025, according to The Taipei Times, and invest up to $4.4 billion in a major pipeline and export project, the nation’s Ministry of Economic Affairs said. According to President Trump, Taiwan will purchase about 30% of Alaska LNG output for two decades. However, the financial structure and ownership terms remain to be negotiated.
According to the ministry’s statement, the partnership hinges on “the principles of mutual benefit and professionalism” and that it “will conduct project studies and budget approvals according to company procedures.” The potential deal could help ensure the project’s success while helping Taiwan broaden its fuel supply base, but commercial deliveries are not expected before 2032. The Alaska project would give Taiwan another source of natural gas as the country wants to diversify energy imports and reduce its exposure to overseas supply disruptions.
As an island country, Taiwan depends on imports. In 2025, it imported 95.4% of its energy. LNG accounted for 23.6% of its total energy supply. Taiwan’s dependence on imported fuel leaves its energy supplies vulnerable to maritime shipping disruptions, as the Persian Gulf is experiencing. It has already expanded its energy purchases from the United States.
In February, Taiwan’s state-owned oil and gas company, CPC Corporation, signed a long-term agreement with Cheniere Energy to purchase up to 1.2 million metric tons of LNG annually from 2026 through 2050, adding to an existing contract for approximately 2 million metric tons annually. Taiwan has announced plans to increase the U.S. share of its LNG imports to 25% by 2029. Importing natural gas from Alaska would offer a shorter shipping route through the North Pacific than supplies from the U.S. Gulf Coast, reducing reliance on shipping routes through the Panama Canal or around the Cape of Good Hope and lowering transportation time and costs.
The Alaska LNG project would transport natural gas from Alaska’s North Slope through an 807-mile pipeline to an export terminal in Nikiski, where the gas would be cooled into liquid form and shipped overseas to prospective buyers. Glenfarne Alaska LNG is developing the project in partnership with the state-owned Alaska Gasline Development Corporation in two phases. The first phase would supply natural gas to Alaskan communities and businesses, and the second phase would add an export terminal capable of producing 20 million metric tons of LNG annually. Developers are targeting initial LNG exports in 2031, with a final investment decision on the pipeline planned by the end of this year and a decision on the export facility next year. Glenfarne recently told the U.S. government in a report that the project could deliver its first gas in 2029.
The developers are seeking long-term purchase commitments from Asian buyers to secure financing. According to Glenfarne, its commercial agreements total 13 million metric tons of annual LNG sales (~625 billion cubic feet) as of September 30, 2026, including preliminary commitments from buyers in Taiwan, Japan, South Korea, and Thailand. The project needs agreements covering another 3 million metric tons and must convert those commitments into binding contracts to secure financing. According to Taiwan’s Ministry of Economic Affairs, its LNG deliveries from Alaska could begin as early as 2032 if development proceeds on schedule.
Taiwan is home to TSMC, a semiconductor manufacturer, and its energy demand has climbed with AI growth. This summer, it projected its average electricity demand growth rate through 2035 to exceed that of Japan and South Korea. Taiwan’s economic affairs ministry said the growth rate would increase by about 2.5% a year, the second-highest forecast in its history.
Last month, President Trump announced that South Korea had committed $54 billion to the pipeline project as part of a broader investment deal South Korea made with the Trump administration last year in exchange for lower U.S. tariffs. Under the terms of that investment agreement, the United States and South Korea would receive equal shares of the project until the original investment is repaid, after which the United States would receive 90%. South Korea, however, claimed that it had not finalized funding for the pipeline and is still determining whether the project was viable.
Conclusion
Taiwan plans to buy 6 million metric tons of liquefied natural gas annually from Alaska consistent with a letter of intent signed in March 2025, and invest up to $4.4 billion in a major pipeline and export project. However, the financial structure and ownership terms are still to be negotiated. As an island country, Taiwan imports over 95% of its energy, and LNG makes up 23.6% of its total energy supply. Shipping LNG directly across the Pacific Ocean would provide an alternative to routes through the Panama Canal or around the Cape of Good Hope, reducing transportation time and costs. The deal would diversify the island’s LNG supplies, strengthen energy security, and deepen ties with the United States, from which it is already importing LNG.
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