US to account for over 20% of LNG imports: minister
By Meryl Kao / Staff reporter
US liquefied natural gas (LNG) is expected to account for more than 20 percent of Taiwan’s LNG imports this year, up from 10 percent last year, and rise to 25 percent by 2029, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday.
If talks to purchase LNG from an Alaskan project proceed smoothly, supply could begin as early as 2032, potentially raising the US share in Taiwan’s LNG imports to 30 percent or more, Kung said.
Under a planned investment of up to US$4.4 billion in the project, CPC Corp, Taiwan (台灣中油) would purchase 6 million tonnes of LNG from Alaska annually once production begins, the ministry said.
Minister of Economic Affairs Kung Ming-hsin speaks at the ministry in Taipei on Jan. 16.
Photo: Lin Jing-hua, Taipei Times
As Taiwan’s natural gas demand continues to rise, with 25 additional large gas-fired power units expected to be added by 2035, the government needs to secure supplies in advance and diversify procurement sources to strengthen energy resilience, Kung said.
In addition, securing stable supplies through long-term contracts could help reduce price volatility in LNG imports, he said.
Alaska is also relatively close to Taiwan, with a shipping time of about 10 days, which could reduce transportation time and shipping risks, Kung said.
For the US$4.4 billion investment, the government has a preliminary plan and an investment ceiling, but the actual amount, equity stake and other terms still need to be determined through negotiations, he said.
Kung said he is confident in CPC’s ability to negotiate favorable investment terms, but declined to disclose pricing because of commercial confidentiality.
The source of funding for the investment would depend on the final investment structure, timetable and CPC’s financial position, and could include capital injections, capitalization of retained earnings or loans, he said.
Funds would also be committed in stages in line with project progress rather than paid in a lump sum, he said.
As Taiwan’s trade surplus with the US has widened, increasing energy purchases from the US could also help narrow the imbalance, Kung said.
Separately, asked about Pegatron Corp (和碩) chairman Tung Tzu-hsien’s (童子賢) suggestion of developing an artificial intelligence (AI) park in the Danhai New Town (淡海新市鎮) area of New Taipei City’s Tamsui District (淡水), Kung said it was “a pretty good idea.”
The area has advantages including large contiguous parcels of land, convenient transportation and access to labor, he said.
The Danjiang Bridge would also improve access to the Port of Taipei and provide links to Taiwan Taoyuan International Airport, improving the area’s transportation advantages, he said.
In contrast, Taipei Mayor Chiang Wan-an’s (蔣萬安) proposal to develop an AI park on the site of Taipei International Airport (Songshan airport) could remain in the discussion phase for another decade because opinions remain divided, Kung said.
Taiwan’s AI industry cannot afford to wait for a consensus before moving ahead, he added.
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