By: Jens Kastner
According to US President Donald Trump on Oct. 14, Taiwan’s Ministry of Economic Affairs has agreed that the state-run CPC Corporation will invest up to $4.4 billion in the long-stalled Alaska liquefied natural gas (LNG) project and purchase 6 million metric tons of LNG per year for 20 years, possibly starting in 2032.
The news comes against the backdrop of the disruption in the Strait of Hormuz caused by the US war against Iran, dramatically highlighting Taiwan’s heavy reliance on oil and gas from the Middle East and its controversial decision last year to end electricity generation from nuclear power.
Trump also said last month that South Korea had committed $54 billion to the pipeline project as part of a broader investment deal with the White House last year in exchange for lower US tariffs. Korea disputed the claim and said it was still looking at the deal.
The other elements of the Taiwan deal are China frequently rehearsing blockade measures against Taiwan, and Taiwan’s rising trade surplus with the US due to the AI hardware export boom, which nearly doubled year on year between January and September to $163 billion.
This puts Taiwan on track to have the third-largest trade deficit with the US this year (following Vietnam and Mexico). This makes it a thorn in Trump’s side, which could prove precarious for Taiwan’s security, as suggested by the fate of a reported $14 billion US-Taiwan arms deal on hold for a prolonged period…
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