Taiwan's government has confirmed a plan to buy gas from an Alaska liquefied natural gas pipeline project, after U.S. President Donald Trump announced the deal at a campaign event in the state. Analysts say Trump's trip to Alaska, a traditional Republican stronghold, and his emphasis on diplomatic wins reflect the party's defensive position heading into the elections.
Taiwan's Ministry of Economic Affairs said in an official statement that the cooperation now planned calls for purchasing 6 million tons of Alaska LNG a year once the pipeline is completed, as well as taking part in developing the project, Taiwan's United Daily News reported on the 14th. Expected investment runs as high as $4.4 billion (about 5.89 trillion won).
That matches Trump's assertion in Wasilla, Alaska, on the 13th that Taiwan had agreed to buy 30% of the gas coming out of the Alaska LNG pipeline project over the next 20 years and would invest an additional $4.4 billion to complete it. The ministry issued its statement within hours of Trump's announcement.
The ministry said CPC Corp., Taiwan signed a letter of intent in Taipei in March last year on purchasing Alaska LNG and investing in the project, in order to secure stable domestic natural gas supplies and maintain a strategy of diversifying sources. "Through a year and a half of intensive negotiations and careful review, we have made significant progress with the U.S. developer," it said.
The ministry also offered a positive assessment of the Alaska LNG project, which critics have described as lacking commercial viability. "The project has a geographic advantage, so gas can be shipped directly to Taiwan via Pacific routes," it said, adding that this helps spread out natural gas transport routes and geopolitical supply risks. Taiwanese officials said that if the project proceeds on schedule, it could begin contributing to Taiwan's domestic natural gas supply as early as 2032. A specific investment timeline, equity stake and related terms, however, must still be negotiated.
In his speech, Trump also repeated his claim that South Korea had agreed to invest $50 billion in Alaska. Seoul's position remains that it can invest only if commercial viability is established.
Voices urging caution have also emerged within Taiwan. Liang Chi-yuan, a researcher at the Research Center for Taiwan Economic Development at National Central University, told United Daily News that risks clearly exist in the investment and that the U.S. had sounded out Japan and South Korea as well, with both countries taking a very cautious stance. "There are savings on shipping costs, but the investment risk is greater, so for Taiwan it would be advisable to first watch how Japan and South Korea respond," he said. Opposition politicians in Taiwan also pushed back, demanding that specific terms be disclosed.
Why Trump Is Courting Alaska
The Associated Press reported that Trump went out of his way to make the long trip to Wasilla to throw his full support behind incumbent Sen. Dan Sullivan. Wasilla lies about 72 kilometers north of Anchorage, Alaska's largest city, and is the hometown of Sarah Palin, the Republican vice presidential nominee in 2008.
"I flew eight hours for Sullivan," Trump said, praising him as the finest and most respected senator in Washington, where the U.S. Capitol sits. At the event, he highlighted Taiwan's investment in the Alaska LNG project and the Federal Communications Commission's spending on high-speed internet infrastructure in the state.
Alaska is a conservative stronghold where Democrats have not won a Senate race in the 16 years since 2008. The state has not elected a Democratic governor since 1998. The pattern is even stronger in presidential races: the only time Alaska did not back a Republican for president was in 1964, when Lyndon B. Johnson won reelection in a landslide. Still, the AP noted that high gasoline prices stemming from the war with Iran and persistent inflation have damaged Trump's approval ratings enough that Democrats can dream of an upset in Alaska.
Alaska's unusual election system has added to Republican anxiety. Because the top four vote-getters advance to the general election regardless of party, November's ballot will include a former teacher named Dan J. Sullivan, who shares a name with the incumbent, Dan S. Sullivan. Trump criticized that candidacy, saying Democrats had found a man named Dan Sullivan to sow confusion.
Deteriorating relations with Canada may also have stirred concern among Alaskans, since the tariff fight between Washington and Ottawa could push up prices in parts of Alaska close to the border. Ivan Moore, an Alaska-based pollster, said treating Canada as an adversary is "uncomfortable" for residents, adding that Alaska is more closely tied to Canadians than other states are.