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According to a statement by Taiwan’s Ministry of Economic Affairs, the deal was signed in Taipei on Thursday.
Under the deal, CPC will seek to buy LNG and participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, according to the statement.
The statement did not provide further details regarding the LoI.
After the signing of the LoI, the two sides will “begin negotiations on procurement and investment details as soon as possible to achieve the goal of mutually beneficial and win-win cooperation,” it said.
Taiwan currently imports LNG via two terminals operated by CPC.
CPC operates the Yung-An LNG terminal with a capacity of 10.5 mtpa and the Taichung LNG import terminal with a capacity of 6 mtpa.
The firm is also expanding its Taichung LNG terminal.
In addition, CPC is also working on other LNG import facilities, and it recently awarded a contract for four 180,000-cbm LNG storage tanks at the planned import terminal in Kaohsiung.
Market interest
AGDC and US energy firm Glenfarne are jointly developing the giant $44 billion LNG project.
In January, Glenfarne confirmed to LNG Prime that it had entered into an exclusive agreement with AGDC to develop the Alaska LNG project, including the Alaska export facility, pipeline, and carbon capture facility.
AGDC recently said that market interest in Alaska LNG continues to accelerate “rapidly” following the agreement with Glenfarne and President Trump’s executive order identifying Alaska LNG as a national priority.
Besides Taiwan, Japan, the Philippines, and South Korea may be interested in buying LNG from Alaska.
Shipping LNG from Alaska to Asian countries would take less time and effort compared to US Gulf Coast LNG export plants, as LNG carriers would not need to pass through the Panama Canal.
20 mtpa
Alaska LNG is expected to export up to 20 million tonnes per annum of LNG.
The facility includes three LNG trains, two 240,000-cbm storage tanks, and two jetties to accommodate LNG carriers up to 217,000 cbm.
AGDC received all major federal permits and authorizations for Alaska LNG.
It secured approval from the US FERC to construct the project back in May 2020.
The company previously said that it is pursuing an option to phase Alaska LNG by prioritizing the in-state pipeline portion of Alaska LNG consisting of the 42-inch pipeline from the North Slope to Southcentral Alaska to provide natural gas to avert the looming energy crisis facing the region.
Phase 1 of Alaska LNG does not involve construction of an LNG plant, and as a result has a materially lower capex requirement and construction timeframe, allowing gas transportation as early as 2029-
In June 2024, AGDC and a unit of London-based Pantheon Resources signed a gas sales precedent agreement, which includes, among other conditions, a requirement for the Alaska LNG project to reach FID.