by Martin Haffner Associate Editor
TAIWAN SEEKS ALASKAN NATURAL GAS TO AVOID US TARIFFS
Taipei, Taiwan – In a bid to reduce its reliance on US natural gas supplies and mitigate the impact of potential US tariffs, Taiwan authorities are exploring the purchase of natural gas from Alaska.
The move is part of an effort to diversify Taiwan’s energy mix and minimize the risks associated with US trade policies, which have been increasingly hostile towards the island nation in recent years. Taiwan currently imports significant quantities of liquefied natural gas (LNG) from the United States, with the majority coming from Cheniere Energy’s Sabine Pass terminal in Louisiana.
However, with the US imposing tariffs on Taiwanese goods, including electronics and semiconductors, Taiwan is looking for alternative energy suppliers to reduce its dependence on US LNG. The country’s government has set an ambitious goal of achieving 20% of its energy mix from non-fossil fuels by 2030.
Taiwan’s state-owned oil company, CPC Corporation, has reportedly initiated negotiations with Alaska Gasline Development Corporation (AGDC), a state-owned entity responsible for the development of the Alaska LNG project. The project, first proposed in 2012, has been stalled due to a lack of funding and regulatory issues.
Under the proposed agreement, CPC Corporation would purchase liquefied natural gas from the Alaska LNG project, with the gas being processed and transported to Taiwan through a combination of pipeline and shipping infrastructure. The deal could potentially provide Taiwan with a secure and stable energy supply, while also reducing its reliance on US LNG exports.
Alaska’s natural gas resources have long been considered a major energy asset for the state, with estimates suggesting that the North Slope holds between 35 and 55 trillion cubic feet of recoverable natural gas reserves. The Alaska LNG project, if completed, would be a major economic development for the state, creating thousands of jobs and generating significant revenue.
While details of the proposed agreement between CPC Corporation and AGDC are still being finalized, industry observers believe that the deal could be a significant step in reducing Taiwan’s reliance on US energy supplies and minimizing the impact of US tariffs. Taiwan’s decision to explore alternative energy sources reflects the increasing complexity and volatility of global trade relationships, as countries seek to ensure energy security and mitigate the risks associated with geopolitics.
As Taiwan continues to explore alternative energy sources, the agreement with Alaska Gasline Development Corporation could prove to be a significant development in the country’s efforts to diversify its energy mix and reduce its reliance on US energy supplies.
