Washington DC [US], October 15 (ANI): US President Donald Trump on Wednesday (local time) announced that Taiwan had agreed to an offtake commitment worth between USD 70 billion and 80 billion for the Alaska liquefied natural gas (LNG) project over the next 20 years, along with a USD 4.4 billion equity investment, while citing South Korea’s USD 50 billion investment in the project.
In a post on Truth Social, Trump said, “I was just in Alaska launching the largest Energy Infrastructure Project in Alaska History--The Alaska LNG Project. This 50 billion-dollar infrastructure investment from the Republic of Korea is part of their Trade and Investment Deal with me.”
He added, “I am also announcing today that my Commerce Secretary, Howard Lutnick, has secured an Offtake Commitment from Taiwan of between 70 to 80 Billion Dollars for Alaska LNG — That is 30% of the Pipeline for the next 20 years. This is the largest Offtake Agreement in History.”
Trump further said, “On top of that, Taiwan has also agreed to invest 4.4 Billion Dollars in Equity into the Project, because this is now a US Federal Government Project, with all necessary permits secured, and all necessary authorisations delivered, and ready to go.”
“This is the Greatest Project in Alaska History, and this only happens with me in the White House. Thank you for your attention to this matter,” he added.
However, Taiwan's specific investment arrangements are still subject to further negotiations and commercial agreements.
According to Taipei Times, Taiwan's Ministry of Economic Affairs said state-owned CPC Corp, Taiwan, would purchase six million tonnes of Alaska LNG annually once production begins, in line with a letter of intent signed in March last year. The ministry added that CPC would invest in the project's development, including the construction of a 1,299-km pipeline.
The ministry said deliveries to Taiwan could begin as early as 2032 if the project starts operations on schedule. It did not confirm whether it had signed a binding sale-and-purchase agreement.
“Specific investment arrangements, equity stakes and related terms will be determined through subsequent negotiations and commercial contract procedures,” the ministry said, according to Taipei Times.
The ministry said the partnership was expected to diversify Taiwan's LNG supplies, provide greater flexibility in managing supply and distribution, strengthen energy security and deepen ties with the United States. The project's location would allow LNG to be shipped directly to Taiwan across the Pacific Ocean, providing an alternative route to help mitigate geopolitical risks.
The Alaska LNG project is expected to produce 20 million tonnes of LNG annually, transporting natural gas from Alaska's North Slope through a pipeline to an export terminal in the state's south. Its developers aim to take a final investment decision on the pipeline by the end of this year, followed by the export facility next year, with initial LNG exports targeted for 2031.
According to Taipei Times, the project has secured agreements covering 13 million tonnes annually from buyers in Asia and French energy company TotalEnergies. It needs commitments for another three million tonnes and must convert the agreements into binding deals to secure financing.
Earlier in October, Trump warned South Korea that the cost of participating in the Alaska pipeline project could rise if Seoul did not commit soon, after being informed that the country was still studying the proposal.
“Tell ’em if they don’t sign shortly, I’m going to double it up. Okay?” Trump told reporters at the White House before boarding Marine One.
When asked whether he had announced South Korea's participation prematurely, Trump said, “Well, I didn’t jump the gun. I mean, they were there and, uh, they were represented, and let’s see. If they don’t wanna do it, that’s okay with me.”
“I’ll just charge ’em more,” he added. (ANI)
"Largest offtake agreement in history": Trump announces Taiwan’s upto $80 billion commitment for Alaska LNG
