Taiwan's State-Owned Oil Company Signs LNG Purchase Agreement with the U.S.
President Lai Chingte Announces Plans to Expand Purchases of U.S. Industrial and Agricultural Products
U.S. President Donald Trump is delivering a speech at the U.S. Congress on the 4th. Taiwan Central News Agency (CNA) and China Times reported on the 21st that Taiwan's state-owned oil company, CPC Corporation, signed a letter of intent for the purchase and investment of liquefied natural gas (LNG) with the Alaska Gasline Development Corporation (AGDC) in the United States the previous day. / Photo by Reuters and Yonhap News
Taiwan has decided to participate in the Alaska liquefied natural gas (LNG) development project supported by U.S. President Donald Trump. This move is interpreted as part of efforts to reduce the trade surplus with the U.S. amid tariff threats from the Trump administration and to strengthen security cooperation with the United States.
According to Taiwan's Central News Agency (CNA), China Times, Reuters, and AFP on the 21st, Taiwan's state-owned oil company, CPC Corporation, signed a letter of intent for LNG purchase and investment with the Alaska Gasline Development Corporation (AGDC) at its Taipei headquarters the previous day. This took place during a visit to Taiwan by Alaska Governor Mike Dunleavy, AGDC, and other business representatives.
The Taiwanese Ministry of Economic Affairs stated in a press release the day before, "Under this agreement, CPC will procure LNG to secure a stable future energy supply for Taiwan and seek rights to participate in upstream investment." While not disclosing detailed information such as the equity participation ratio, the ministry said that signing this letter of intent will effectively reduce (gas) transportation time and risks, thereby enhancing the reliability of Taiwan's gas supply.
President Lai Ching-te of Taiwan welcomed Governor Dunleavy at a dinner reception hosted by the American Chamber of Commerce in Taiwan the previous day, emphasizing regarding the letter of intent, "We are very interested in purchasing Alaska natural gas. This aligns not only with our demand assessment but also with energy security." He also announced plans to increase purchases of U.S. industrial and agricultural products.
The Alaska LNG project is a large-scale endeavor to transport natural gas produced in northern Alaska approximately 1,300 km via pipeline to the southern coast, liquefy it, and export it. The total investment is estimated at $44 billion (about 64 trillion KRW). On the 4th, U.S. President Trump mentioned this project in his congressional speech, stating, "Japan, South Korea, and other countries want to become our partners by investing trillions of dollars each," highlighting it as a national agenda and a key issue in trade and energy cooperation.
Taiwanese and international media reported that Taiwan decided to participate in the Alaska LNG project to reduce its trade surplus with the U.S., thereby easing tariff threats from the Trump administration and strengthening energy security. Taiwan's exports to the U.S. reached a record high of $111.4 billion (about 160.8 trillion KRW) last year, an 83% increase from the previous year. The urgent need for U.S. security support amid China's increasing military pressure on Taiwan is also considered a contributing factor.
Meanwhile, the South Korean government is also reportedly carefully reviewing participation in the Alaska LNG project. Governor Dunleavy is scheduled to visit South Korea on the 24th and 25th to meet with trade and energy officials, including Minister An Deok-geun of the Ministry of Trade, Industry and Energy, as well as representatives from domestic energy companies to discuss cooperation plans.
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