Taiwan plans to significantly increase its imports of liquefied natural gas (LNG) from the United States, aiming for U.S. supplies to make up more than 20% of its total LNG imports this year, up from 10% last year. This strategic move is part of Taiwan’s efforts to diversify its energy sources and enhance energy security.
The country’s Minister of Economic Affairs, Kung Ming-hsin, noted that the share of U.S. LNG in Taiwan’s imports could reach 25% by 2029. Additionally, ongoing negotiations for supplies from an LNG project in Alaska could potentially push the U.S. share to 30% or more by 2032, contingent on project developments.
Under proposed plans, Taiwan’s state-owned CPC Corp could invest up to $4.4 billion in the Alaska LNG project and purchase approximately six million tonnes of LNG annually once production commences. However, the final details, such as the investment amount, ownership stake, and terms of the contracts, are still under negotiation.
The Taiwanese government is focused on securing long-term energy supplies, spurred by a growing demand for natural gas. The planned construction of 25 large gas-fired power units by 2035 is expected to increase the need for stable and reliable fuel sources.
Kung highlighted that long-term LNG contracts are beneficial in reducing price volatility and enhancing supply stability. The proximity of Alaska to Taiwan, with an estimated shipping time of around 10 days, could further decrease transportation time and mitigate associated risks.
Funding for the investment in the Alaska project would depend on the project’s final structure, timeline, and CPC Corp’s financial position. Potential funding sources include capital injections, retained earnings, and loans, with payments likely to be made in stages as the project progresses.
Increasing LNG imports from the United States may also help address Taiwan’s growing trade surplus with the country, Kung added, underscoring the broader economic implications of the energy strategy.