Taiwan’s state-owned oil and gas company, CPC Corporation, signed a letter of intent on Thursday to invest in the Alaska LNG export project and purchase LNG from it. This agreement is part of Taiwan’s strategy to strengthen its gas supply and energy security.
The deal was signed by CPC and the Alaska Gasline Development Corporation (AGDC), a state-run company, in the presence of Alaska Governor Mike Dunleavy, according to a statement from Taiwan’s Ministry of Economic Affairs.
Alaska officials are currently visiting countries in Asia, including Japan and South Korea, to find potential investors for the $44 billion Alaska LNG project, which has strong support from the Trump Administration. The project aims to deliver natural gas from Alaska’s North Slope to local residents and export LNG to U.S. allies in the Pacific.
If completed, the Alaska LNG project would become Taiwan’s nearest LNG supply source among U.S. export facilities. The gas would not have to pass through the Panama Canal, reducing shipping time, risks, and improving the reliability of Taiwan’s natural gas supply, according to the Ministry of Economic Affairs.
Taiwan would also diversify its LNG sources, helping ensure stable energy prices and a consistent supply from a reliable neighbor for years to come, Alaska Governor Dunleavy said in Taipei, as reported by Reuters.
The U.S. is a strong ally of Taiwan, a democratically governed island that China claims as its own. With the Trump Administration’s support, Alaska officials are reaching out to northeastern Asian countries to secure investments in the Alaska LNG project.
Recently, the U.S. has urged Japan and South Korea to increase LNG purchases to reduce America’s trade deficit with these countries. While some Asian partners are interested in the Alaska LNG project, Japanese companies have expressed concerns about the high costs due to Alaska’s cold weather and the extensive pipelines needed to make the project viable.
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