Japan, South Korea, and Taiwan are considering investing in a large natural gas project in Alaska, aiming to reach a trade agreement with Washington to prompt President Trump to cancel the high tariffs on these economies. Additionally, countries in Asia like India have also shown interest in investing in this energy project.
According to a report from CNBC, Alaska has long been seeking to construct an 800-mile pipeline spanning from the North Slope inside the Arctic Circle to the southern Cook Inlet, where the natural gas would be cooled into liquid form for export to Asia. The project comes with a staggering cost of up to $40 billion and has remained dormant for years. However, with President Trump prioritizing the Alaska LNG project as a national agenda, it is now showing signs of revitalization.
As per information released by the Taiwanese Ministry of Economic Affairs, CPC Corp., Taiwan signed an intent letter for the purchase and investment of Alaska LNG on March 20. The Ministry stated that this move not only deepens energy cooperation between Taiwan and the United States but also strengthens Taiwan’s supply of natural gas.
Brendan Duval, the CEO and founder of Glenfarne Group, the primary developer of the Alaska LNG project, mentioned that CPC Corp., Taiwan, will purchase 6 million metric tons of natural gas from the project.
Duval commented in an interview with CNBC, “You can imagine the geopolitical strengthening, whether it’s for tariff issues or military reasons—Taiwan really values signing this agreement.” CPC Corp., Taiwan, has also proposed direct investment in the Alaska LNG project and offering equipment.
Duval and Alaska Governor Mike Dunleavy traveled to Japan and South Korea in March to conduct trade surveys and met with senior government and industry officials. Duval mentioned that Japanese and Korean companies have inquired about whether their development banks can assist in financing the Alaska LNG project.
He further added, “Recently, there have been quite a few inquiries from India, so a fourth player has joined the competition,” indicating interest from Thailand and other Asian countries.
On April 2, President Trump announced a global tariff plan, setting equivalent tariffs of 24% for Japan, 25% for South Korea, and 32% for Taiwan. On April 9, Trump announced a 90-day suspension of equivalent tariffs on countries other than China to allow time for the United States and these trading partners to reach trade agreements.
Scott Bessent, the U.S. Secretary of the Treasury, mentioned earlier this month that the Alaska LNG project could play a crucial role in U.S. trade negotiations with South Korea, Japan, and Taiwan.
Bessent stated on April 9, “We are considering establishing a large-scale liquefied natural gas project in Alaska, with South Korea, Japan, and Taiwan willing to provide funding and secure a considerable portion of procurement.” He expressed that such agreements would help reduce the trade deficit between the United States and these economies.
Data from commodity research company Kpler shows that the Alaska LNG project aims to produce 20 million metric tons of liquefied natural gas annually, accounting for 23% of the United States’ liquefied natural gas exports of 87 million metric tons last year.
Alaska plays a core role in Trump’s goal of increasing U.S. oil and natural gas production and exports, which is part of the White House’s agenda to achieve U.S. “energy dominance.” On his first day in office, the President issued an executive order seeking to tap into Alaska’s “extraordinary resource potential” and prioritize the development of liquefied natural gas in the state.
As tensions rise worldwide over the high U.S. tariffs, Trump has made it clear that to avoid facing higher tariffs in the future, trading partners can choose to purchase more U.S. energy as a pathway to reaching agreements.
Taiwan’s Minister of Economic Affairs, Guo Zhixun, stated on April 10 that over the next decade, the government and state-owned enterprises could increase additional purchases of up to $200 billion in goods from the United States, raising the import ratio of liquefied natural gas from 10% to 30% to reduce the trade deficit with the U.S. and promote bilateral agreements.