Taiwan will buy 30% of the gas produced by the future LNG project in Alaska for 20 years, US President Donald Trump said. He said Taiwan will also invest $4.4 billion in building energy infrastructure.
“Taiwan has just agreed to buy 30% of the gas that comes out of the pipeline over the next 20 years“, Trump said at a campaign rally in Alaska. He described the agreement as “one of the biggest deals in history“ and said it “guarantees success” of the project for two decades.
The American president did not provide details of the terms of the agreement, including whether it is a final contract to purchase liquefied natural gas or a preliminary commitment. At the time of the statement, there was no public confirmation from Taiwanese authorities, the Associated Press reported.
The project envisages a pipeline nearly 1,300 kilometers long
The Alaska LNG project envisages the construction of a pipeline about 1,298 kilometers long. It should transport natural gas from deposits on the North Slope of Alaska to the southern part of the state, where the fuel will be cooled to a liquefied state and exported to Asian markets.
The planned capacity is nearly 4 billion cubic feet of liquefied natural gas per day. Developer Glenfarne Alaska LNG estimates the project's value at up to $55 billion, and its implementation has been delayed for years due to high costs and questions about its economic viability.
South Korea is also involved in the project
Trump previously said that South Korea would invest more than $50 billion in Alaska LNG. However, South Korean officials said that the country's participation was not yet final and that the project must pass economic feasibility and legal assessments.
South Korean Minister of Trade, Industry and Resources Kim Jung-gwan said that Trump's announcement went beyond what had been achieved between the two countries. According to him, what has been agreed is only the start of work on the project, provided that its commercial viability is proven.
Taiwan's new bid would provide a preliminary buyer for a significant portion of future production, but the practical significance of the commitment will depend on the signing of formal contracts and the final investment decision for the construction of the project.
Sources: apnews.com, news.bloomberglaw.com, alaskapublic.org