Taiwan plans to significantly increase its imports of liquefied natural gas (LNG) from the United States, aiming for over 20% of its total LNG supplies this year, compared to 10% last year. The share is expected to reach 25% by 2029 as part of the government’s strategy to diversify energy sources and bolster energy security.
Taiwan’s Minister of Economic Affairs, Kung Ming-hsin, highlighted that ongoing negotiations to secure supplies from an LNG project in Alaska could boost the U.S. share to 30% or more by 2032, contingent on the project’s progress. Under the proposed plan, CPC Corp, Taiwan, may invest up to US$4.4 billion and purchase around six million tonnes of LNG annually once production begins. However, the final investment amount, ownership stake, and contractual terms remain subjects of negotiation.
The government is focused on ensuring long-term energy supplies to meet Taiwan’s growing natural gas demand, driven by the planned addition of 25 large gas-fired power units by 2035. Kung noted that long-term LNG contracts could mitigate price volatility and enhance supply stability. Additionally, Alaska’s proximity to Taiwan, with an estimated shipping time of about 10 days, could reduce transportation time and associated risks.
The investment will be funded based on the final project structure, timeline, and financial position of CPC Corp. Potential funding sources include capital injections, retained earnings, and loans, with payments expected to be made in stages as the project advances.
Kung also mentioned that increased energy purchases from the United States could help narrow Taiwan’s growing trade surplus with the country. This strategic move aligns with Taiwan’s broader efforts to strengthen its energy security while fostering economic ties with the U.S.