TAIPEI (Taiwan News) — Minister of Economic Affairs Kuo Jyh-huei (郭智輝) said Wednesday that Taiwan is exploring opportunities to join Alaska’s liquefied natural gas extraction project, with investments capped at 50%.
Recent reports suggest that the US is advancing its Alaska LNG export project, inviting Asian partners, including Japan, South Korea, and Taiwan, to invest and collaborate. The project is expected to cost NT$1.45 trillion (US$44 billion), per Reuters and CNA.
Wang emphasized that Taiwan’s investment will “absolutely not account for half” of the project. As a shareholder, Taiwan will work to secure favorable pricing and ensure that the investment aligns with its national interests.
According to Taiwan's 2024 statistics, the total LNG import volume reached 21 billion kg. Of this, 38% came from Australia, making it Taiwan's largest supplier.
Qatar followed with 25%. The US ranked third, supplying 10% of Taiwan’s LNG.
Shipping natural gas from the US used to be a lengthy process. However, the transit time from Alaska to Taiwan has now been reduced to just 10 days.
The project includes the construction of a 1,300-km pipeline to transport natural gas from northern Alaska to the southern part of the state for liquefaction, before it is exported to Asian markets. Taiwan currently imports 10% of its natural gas from the US and plans to increase this share to 20-30%.
Taiwan is still in discussions about participating in the project. Although the investment is substantial, it will be directly linked to the volume of natural gas Taiwan plans to purchase, Wang said.
On March 20, state-owned Chinese Petroleum Corp. signed an agreement with Alaska Gasline Development Corp. to purchase liquefied natural gas and invest in the project. CPC explained that its investment plan will depend on Taiwan's demand for natural gas, and its equity stake will be tied to the amount of gas Taiwan intends to purchase.
Once operational, the Alaska LNG project would become the nearest LNG supply source to Taiwan among existing US facilities. The project’s shipping route, which does not require passing through the Panama Canal, would shorten delivery times, reduce voyage risks, and enhance the reliability of Taiwan’s natural gas supply.
