Taiwan Plans Substantial Increase in US Liquefied Natural Gas Imports Following Trade Agreement

Taiwan has announced intentions to significantly expand imports of United States liquefied natural gas, targeting 30 to 33 per cent of total supply compared to the current 10 per cent level. The expansion follows a comprehensive trade and investment agreement between Taiwan and the United States concluded last month.

Fang Jeng-zen, chairman of Taiwan’s state-controlled CPC Corporation, confirmed the import targets to reporters on Thursday, indicating the territory will reduce purchases from alternative suppliers to accommodate increased American gas volumes. The Economy Minister Kung Ming-hsin, responsible for national energy policy direction, corroborated the strategic shift towards US supply sources.

The announcement builds upon CPC Corporation’s letter of intent signed in 2025 to invest in the Alaska LNG export project and secure offtake agreements. The initiative forms part of Taiwan’s broader strategy to strengthen gas supply resilience and energy security. The Trump Administration has provided substantial support to the $44 billion Alaska LNG project, with officials dedicating considerable effort to securing Asian investment and offtake commitments.

Last month, Glenfarne Group, the majority owner and developer of Alaska LNG, disclosed significant progress advancing Phase One from development to early execution stage. Phase One encompasses a 739-mile pipeline infrastructure to transport natural gas from Alaska’s North Slope for domestic consumption. Glenfarne projects mechanical completion by 2028 with initial gas delivery in 2029. Phase Two will establish liquefaction terminal capacity and associated infrastructure to export 20 million tonnes per annum of LNG.

The January trade and investment agreement reduces United States tariffs on Taiwanese products to a maximum 15 per cent rate, incorporating tariff exemptions across multiple sectors, notably for Taiwanese semiconductor manufacturers investing in American operations. Taiwan has committed to provide credit guarantees exceeding $250 billion to facilitate additional Taiwanese enterprise investment, supporting establishment and expansion of comprehensive semiconductor supply chain infrastructure in the United States, according to the US Commerce Department.

The energy procurement expansion represents a strategic alignment of commercial, security and diplomatic objectives between Taiwan and the United States, with natural gas supply diversification serving as a tangible component of broader bilateral economic integration.