Taiwan plans to buy 6 million metric tonnes of liquefied natural gas each year from a proposed U.S. project in Alaska and could invest up to $4.4 billion in its development, the island’s Economic Affairs Ministry said on Wednesday.

The plan centres on state-owned CPC Corporation. Taiwan’s ministry said CPC signed a letter of intent on the Alaska project in March 2025 and that the company and its U.S. counterparts have made progress after more than a year of negotiations and evaluation.

The figures are substantial, but they do not yet amount to a completed commercial contract. The ministry said the investment arrangements, shareholding ratios and related terms would be handled through later negotiations and commercial procedures. It also said the project could begin supporting Taiwan’s gas supply in 2032 at the earliest if it proceeds as planned.

Taipei presents the proposal as a way to diversify natural-gas supplies and increase flexibility. Taiwan relies heavily on imported energy, and long-term supply arrangements can reduce exposure to disruption in one shipping route or market. The strategy also links energy policy to the island’s broader relationship with the United States.

Donald Trump praised the plan at a rally in Alaska, calling it one of the biggest commitments in history. AP reported that he said Taiwan had agreed to buy 30% of the gas from the pipeline for 20 years. Taiwan’s own statement did not specify how many years it had committed to, so the presidential description should not be treated as the final contract terms.

The proposed pipeline would run roughly 807 miles from Alaska’s North Slope to an LNG export terminal in the southern part of the state. Whether it can be built on schedule and at a commercially viable cost remains an open question; the project’s future depends on construction, financing, regulation and demand.

The political context is equally important. Washington is Taiwan’s main informal supporter and arms provider, while Beijing claims the island and opposes official exchanges with it. Taiwan was also awaiting a U.S. arms package, making the energy announcement part of a wider conversation about strategic alignment.

The deal therefore sits at the intersection of energy security and diplomacy. Taiwan is seeking more secure supply, the United States is seeking investment and market commitments, and China is watching an arrangement that could deepen the island’s economic ties with Washington. The numbers are real; the final project is not yet settled.