Taipei: Taiwan and Alaska are on the verge of finalizing a historic agreement for Taiwan to purchase 6 million tons of liquefied natural gas (LNG), potentially marking the largest LNG sale in Alaska’s history, according to the state’s governor.

According to Focus Taiwan, Alaska Governor Mike Dunleavy highlighted the significance of the deal during a media event on July 29. He emphasized that the purchase would make up approximately 30 percent of the Alaska LNG Project’s anticipated annual output, which is projected to be 20 million tons. The extensive US$44 billion project involves treating natural gas on the North Slope, transporting it through a 1,300-kilometer pipeline to Nikiski in southcentral Alaska, and then liquefying it for export.

In response to inquiries about potential U.S. tariff concessions linked to cooperation with the LNG project, Governor Dunleavy stated that discussions on tariffs, trade, and energy are ongoing in Washington, D.C. He also mentioned that Thailand is expected to sign a Head
s of Agreement for 2 million tons and called on South Korea and other U.S. trade partners in Asia to engage with the project.

The negotiations for the Alaska LNG deal are occurring amid heightened trade tensions between Taiwan and the U.S. Recently, the White House announced a 20 percent tariff on Taiwanese goods imported to the U.S., effective from August 7, compared to a lower 15 percent levy on imports from Japan and South Korea. Taiwan’s President Lai Ching-te described the tariff figure as “tentative” and noted that Taiwan’s negotiating team is striving for a more favorable outcome in the final discussions with Washington.

LNG exports from the Alaska project are slated to commence in 2030 or 2031, as stated by Governor Dunleavy. Presently, the U.S. supplies 10 percent of Taiwan’s LNG, positioning it as Taiwan’s third-largest LNG source after Australia and Qatar, according to the Energy Administration.

In February, Republican Senator Dan Sullivan emphasized the strategic defense value of the Alaska LNG
deal for Taiwan, Japan, and South Korea, which are increasingly dependent on Qatari gas. He pointed out that unlike Qatar, which might be influenced by China’s directives, U.S. LNG shipments would likely remain unaffected even in the event of a blockade of Taiwan, referring to the increasing Chinese military pressure in the region.

Governor Dunleavy reiterated similar points during his visit to Taiwan in late March, where he met with President Lai on two occasions. Although he revisited the topic in mid-May, Taiwan’s Economic Minister Kuo Jyh-huei stated on May 22 that no formal commitment had been made, although CPC Corp. had signed letters of intent to invest.

As of the latest updates, the Taiwanese government has not commented on Governor Dunleavy’s recent statements, and no official deal has been formally announced.