Taiwan signals intent to buy Alaskan natural gas

The announcement came as Alaskan Governor Mike Dunleavy visited Taiwan as part of an Asia tour to drum up investment for the state's natural gas pipeline project, which US President Donald Trump has described as "gigantic".

Taiwan's Ministry of Economic Affairs said last month that CPC was "very interested" in Alaskan liquefied natural gas (LNG) and the company signed a letter of intent on Thursday.

"Under the agreement, CPC will procure LNG and seek upstream investment participation rights to secure a stable future energy supply for Taiwan," the ministry said in a statement.

The agreement, signed with state-run Alaska Gasline Development Corporation, will be followed by talks about "procurement and investment details to achieve mutually beneficial and win-win cooperation goals", the statement said.

Alaskan natural gas "can meet our needs and ensure our energy security", said Taiwan President Lai Ching-te, addressing an American Chamber of Commerce event.

Taiwan imports nearly all its energy supply, with official data showing about 38 percent of its natural gas comes from Australia, 25 percent from Qatar and just under 10 percent from the United States.

Speaking at the same event, Dunleavy urged businesses and policymakers in Taiwan "to explore investment opportunities" in the pipeline project.

"Taiwan can increase its diversification of LNG sources from America through Alaska, ensuring stable energy prices and consistent supply from a friendly neighbour for many decades to come," Dunleavy said.

South Korea, Japan and the Philippines have also expressed interest in natural gas from Alaska.

Lai's government has vowed to increase investment in the United States after Trump threatened tariffs on overseas-made semiconductor chips -- a sector dominated by Taiwan.

Trump has described the planned 1,300-kilometer (800-mile) pipeline as being "among the largest in the world".

The pipeline will transport natural gas extracted from the vast reserves at Prudhoe Bay and around Point Thomson in northern Alaska to the south, where it will be transformed into LNG.

The LNG will finally be transported by tanker to Asia, its main market, in a relatively short seven to nine-day journey across the Pacific Ocean.