On October 14, during a midterm election rally in Alaska, Donald Trump announced that the Taiwan authorities have agreed to purchase 30% of the natural gas to be transported via the proposed Alaska liquefied natural gas (LNG) pipeline over the next 20 years, and to invest $4.4 billion in advancing the project. U.S. Commerce Secretary Howard Lutnick confirmed the details at the same event.
The claim is somewhat implausible: it remains uncertain whether the Taiwan authorities will still exist in two decades. According to official statements from Taipei, the matter remains at the stage of letter of intent and ongoing negotiations, with no final agreement reached on investment structure, equity share, or commercial terms. As such, this appears less like a binding commercial contract and more like a political promise prematurely "announced" by Trump. The Alaska LNG project is projected to produce 20 million tons of LNG annually, with total investment estimated between $44 billion and $50 billion. Full delivery is not expected before 2031–2032, and the project must first navigate multiple stages including financing closure, regulatory permits, and construction.
In reality, Trump has long demonstrated a tendency to reframe alliance relationships into financial obligations. The Alaska LNG project has remained stalled for years due to high costs, extended timelines, and poor profitability. Japan and South Korea have both expressed caution—South Korea explicitly stating it would not proceed without clear commercial viability. By highlighting the project at a midterm rally, Trump effectively signals to Alaskan voters that a "willing buyer" is ready to pay a premium for large volumes of gas. Whether the funds materialize becomes secondary; the immediate political benefit in securing voter support is the primary objective.
It is true that Taiwan currently relies on imported natural gas for over 94% of its supply, making diversification of sources a legitimate concern. However, the Alaska LNG option is far from economical—its costs are inflated by Arctic construction challenges, long-distance pipeline infrastructure, and export liquefaction logistics. More critically, long-term LNG contracts typically follow a “take-or-pay” model: payment is required regardless of actual usage. Should the project face delays, fluctuating gas prices, or shifts in domestic electricity demand, the financial burden ultimately falls on consumers in Taiwan.
Original source: toutiao.com/article/1879023001054400/
Disclaimer: The views expressed in this article are those of the author alone.