Trump claims Taiwan will buy 30% of Alaska LNG for 20 years
Donald Trump says Taiwan has agreed to buy 30 per cent of the gas from a proposed Alaska liquefied natural gas pipeline for 20 years and invest $4.4 billion in the project. If confirmed, the deal would provide a major customer and investor for a costly development intended to supply Asian markets.
The planned pipeline would stretch about 800 miles and enable exports of up to 20 million metric tonnes of LNG a year. The full project is estimated to cost $44.5 billion to $54.5 billion, though its developer puts the pipeline’s first phase at $13.2 billion to $16.9 billion. South Korea has not confirmed an investment, despite Trump’s claim of a $50 billion commitment; Taiwan’s energy ministry had not commented.
- Trump says Taiwan will buy 30% of Alaska LNG for 20 years.
- He says Taiwan will invest $4.4 billion in the project.
- South Korea has not confirmed the investment Trump claimed.
New here? Start with this
Alaska has large reserves of natural gas, but much of it is far from markets and difficult to transport. The proposed project would carry gas about 800 miles to a facility where it could be cooled into liquefied natural gas, or LNG, for shipment by sea.
The project’s developer hopes to sell the gas to buyers in Asia, where LNG is used to generate electricity and for heating and industry. Building the pipeline and export facilities would cost tens of billions of dollars, so securing long-term customers and investors is important to whether the project can go ahead.
Taiwan relies on imported energy, including LNG, and South Korea is also a major LNG buyer. Their potential involvement matters to the project’s financing and to Alaska’s plans to export more gas across the Pacific.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
If confirmed, Taiwan’s long-term purchase and investment could give the costly project a dependable customer and help it attract financing, while expanding energy supplies to Asian markets. Supporters could also see the deal as strengthening US–Taiwan economic ties and diversifying Taiwan’s energy sources.
The case against
The project’s high cost and scale make it uncertain whether the claimed commitments will translate into a viable development, particularly while Taiwan has not confirmed them. Critics could question whether a long-term LNG deal is the best use of investment and whether its economic and energy-security benefits justify the project’s costs and environmental impacts.
Read the full article at the source →
Originally published by Daily Mail as “Trump says Taiwan agrees to buy 30% of LNG from Alaska…”.