Shock from Trump to global energy market / details of the largest natural gas purchase deal in history

Taiwan commits to buying 30% of the capacity of the Alaska pipeline project for the next 20 years, with a $4.4 billion investment.

"I was just in Alaska to break ground on the largest energy infrastructure project in the state's history, the Alaska LNG Project," Trump wrote on his Truth Social Network on Wednesday EST. This $50 billion infrastructure investment by the Republic of Korea is part of their trade and investment agreement with me.

He added: I am also announcing today that Howard Lutnick, my Secretary of Commerce, has succeeded in obtaining a long-term purchase commitment from Taiwan worth between 70 and 80 billion dollars for Alaska's liquefied natural gas; This amount is equivalent to 30% of the pipeline capacity for the next 20 years.

The President of the United States claimed: This is the biggest purchase agreement in history. In addition, Taiwan has agreed to contribute $4.4 billion as equity capital to the project; Because this plan is now a project of the United States federal government, all the necessary permits and approvals have been obtained and issued, and it is ready to be implemented.

Trump, who raised this issue at the Republican gathering in Alaska, claimed: "This is the biggest project in the history of Alaska, and something like this will only happen when I'm in the White House."

Taiwan has announced that negotiations to purchase liquefied natural gas (LNG) from the Alaska project are progressing, and the country plans to invest $4.4 billion in the project.

Taiwan's Ministry of Economy announced that the state-owned energy company CPC has made significant progress in talks with the project developer after nearly a year and a half of negotiations and evaluation.

The Alaska LNG project is supposed to produce 20 million tons of liquefied natural gas annually. This plan has been proposed for a long time, but many industry activists have doubts about its economic justification; Because its implementation requires the construction of a long pipeline and large investment, and its costs, according to analysts, will be more than twice that of a similar facility on the coast of the Gulf of Mexico.

According to the announced plan, CPC will purchase 6 million tons of liquefied natural gas annually from this project after the start of production. This company will also participate in the development of the project and its investment is estimated to reach a maximum of 4.4 billion dollars.

The Alaska project has so far reached agreements for the annual sale of 13 million tons of gas with Asian buyers and the French giant Total Energy. The plan would require agreements to sell another three million tons a year to finance it, and would need to convert existing agreements into binding contracts in order to secure the necessary financing.

The implementation of this project will provide direct access to liquefied natural gas produced in the United States to Asian markets, including Taiwan; Without the cargo having to pass through the Panama Canal or take the long route around the Cape of Good Hope in South Africa. This direct route can reduce transportation time and cost.

Project developers plan to make a final investment decision in 2026 on the 800-mile pipeline. The final decision on export facilities is also planned for 2027, and the goal is to export the first shipments of liquefied natural gas in 2031.

Trump announced last month that South Korea had agreed to invest in the $54 billion Alaska LNG project, but Seoul said the matter had not yet been finalized.

Taiwan's Ministry of Economy also announced that if the project progresses according to the schedule, this plan can start supplying more natural gas to Taiwan from 2032.