Taiwan and Alaska are close to finalizing a deal for Taiwan to purchase 5.44 million tonnes of liquefied natural gas (LNG), which would mark the largest such sale in Alaska’s history, the state’s governor said.
“It’s moving to an absolute solid offtake with Taiwan of 6 million tons of gas... Now that 6 million tons from Taiwan is the largest offtake in LNG history in terms of sales,” Alaska Governor Mike Dunleavy said at a media event on Tuesday last week.
The purchase would account for about 30 percent of the Alaska LNG Project’s planned annual output of 20 million tons. The US$44 billion project involves treating gas on the North Slope, transporting it via a 1,300km pipeline to Nikiski in southcentral Alaska, and then liquefying it for export.
Photo: CNA
The Republican governor made the remark in response to a question about whether US tariff concessions could depend on cooperation with the LNG project.
“I think those discussions are happening in [Washington] DC with these tariff and trade talks, and energy talks. I think those discussions are happening right now,” he said.
Dunleavy said Thailand is also expected to sign an agreement for 1.8 million tonnes, and called on South Korea and other US trade partners in Asia to join the project.
“It’s a tremendous opportunity to not only buy gas from, but to invest in” Alaska, he said.
The Alaska LNG talks come amid broader trade tensions between Taiwan and the US. The White House on Thursday last week announced a 20 percent tariff on Taiwanese goods imported into the US from Thursday — compared with a 15 percent levy on imports from Japan and South Korea.
President William Lai (賴清德) called the figure “tentative” and said Taiwan’s negotiating team is working to secure a more favorable deal in final talks with Washington.
LNG exports under the Alaska project are scheduled to begin in 2030 or 2031, Dunleavy said.
The US currently supplies 10 percent of Taiwan’s LNG, making it the nation’s third-largest source after Australia and Qatar, according to Energy Administration data.
Republican US Senator Dan Sullivan in February said that the Alaska LNG deal carries strategic defense value for Taiwan, Japan and South Korea, which are increasingly reliant on Qatari gas.
Unlike the Qatar regime, which is subject to China’s direction and could cut LNG supply to these nations, the US is not listening to you, China, he said.
He also said US LNG shipments would likely remain unaffected in the event of a blockade of Taiwan — a tacit reference to growing Chinese military pressure in the region.
Dunleavy’s remarks echoed those made during his visit to Taiwan in March, when he met Lai twice. He raised the topic again in May, but on May 22, Minister of Economic Affairs J.W. Kuo (郭智輝) said no formal commitment had been made, even though CPC Corp, Taiwan (台灣中油) had signed letters of intent to invest.
As of press time, the government had not commented on Dunleavy’s latest remarks and no official deal had been announced.
No concrete information is available yet on the purchase volume or amount of a deal between Taiwan and Alaska, CPC said yesterday.
CPC is awaiting finalized procurement details from the seller, including the pricing formula.
Alaska’s geographical location is strategically advantageous due to the relatively short shipping route to Taiwan, CPC said, adding that the deal would help diversify the company’s LNG sources.
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