Taiwan is set to increase its imports of liquefied natural gas (LNG) from the United States, expecting them to comprise over 20% of its total LNG supplies this year, up from 10% in the previous year. This move is part of Taiwan’s broader strategy to diversify its energy sources and bolster its energy security, with projections indicating that the U.S. share could rise to 25% by 2029.
The Taiwanese government is actively seeking to secure long-term energy supplies as the country’s demand for natural gas grows. Plans are underway to add 25 new large gas-fired power units by 2035, which will heighten the need for consistent fuel sources. Minister of Economic Affairs Kung Ming-hsin highlighted that ongoing negotiations for supplies from an LNG project in Alaska could further elevate the U.S. share to 30% or more by 2032, contingent upon the project’s development.
Under the proposed arrangement, CPC Corp, Taiwan, may invest up to US$4.4 billion, purchasing about six million tonnes of LNG annually once production commences. Details regarding the final investment amount, ownership stake, and contractual terms are still under negotiation. The investment is anticipated to be financed through capital injections, retained earnings, and loans, with payments structured in stages as the project progresses.
Kicking off these long-term LNG contracts could help Taiwan mitigate price volatility and ensure a stable supply, according to Kung. Additionally, the relatively short shipping time from Alaska to Taiwan, estimated at around 10 days, could reduce transportation-related risks.
Moreover, increasing LNG imports from the United States may also assist in narrowing Taiwan’s trade surplus with the country, Kung added, as the economic ties between the two nations continue to be strengthened through energy trade.