Taiwan signs major LNG deal with Alaska amidst tariff tensions

In March 2025, Taiwan's state oil and gas company CPC Corp. entered into a significant agreement to purchase six million metric tons of liquefied natural gas (LNG) from the Alaska LNG project. This development comes amid ongoing discussions between Japan, South Korea, and Taiwan regarding investments in this substantial natural gas initiative, driven by the need to address U.S. trade tariffs imposed by President Donald Trump. Alongside these Asian partners, the project, which is projected to cost around $42 billion, seeks to boost U.S. energy dominance by significantly increasing the country's oil and gas production and exports. The Alaska LNG project involves the development of a pipeline, gas processing plant on the North Slope, and a liquefaction plant at Nikiski, aimed at facilitating the export of LNG to help meet energy demands in Asia. Alaska Governor Mike Dunleavy, who has been actively promoting the venture, emphasized the importance of this project not only in addressing energy needs but also in enhancing geopolitical ties amidst the tariff negotiations. The discussions reflect a broader strategy by the U.S. administration to encourage foreign investments in American energy infrastructure as part of a push to reduce the trade deficit. In February 2025, President Trump highlighted the importance of joint ventures in exploiting Alaska's oil and gas resources during a press conference with Japanese Prime Minister Shigeru Ishiba. He confirmed discussions regarding a potential pipeline and emphasized the importance of Asian partnerships in investing in U.S. natural gas projects. The urgency of these talks illustrates the American administration's strategic objective to leverage natural gas exports as a means to strengthen alliances with key partners in Asia while countering the impact of tariffs on their exports to the U.S. However, despite the international interest in the Alaska LNG project, analysts pointed out that the venture faces significant challenges. Bob McNally, a former energy advisor, noted that while the Trump administration is exerting pressure to gain foreign investments, market conditions and competitive alternatives available to Asian customers may hinder the project's commercial viability. With the total investment cost projected to exceed $40 billion, the attraction of existing LNG options in the Gulf Coast presents a dilemma for the prospective investors, illustrating the complexities of undertaking large-scale energy projects in the current geopolitical environment.