China National Petroleum Corporation’s investment in Alaskan gas source reaches “maximum” US$4.4 billion; US gas has the largest jump, accounting for 35%

The State-Owned Industry Department of the Ministry of Economic Affairs stated that CNPC will participate in the Alaska LNG development project with a maximum investment of US$4.4 billion to ensure diversified supply and energy security in the future. (Photo by reporter Lin Jinghua)

[Reporter Lin Jinghua/Taipei Report] China National Petroleum Corporation has finalized its investment in Alaskan natural gas! U.S. President Trump proposed Taiwan's participation in the Alaska LNG project. The Ministry of Economic Affairs stated that after China National Petroleum Corporation signed the "Letter of Intent (LOI) for the purchase and sale of Alaska LNG (Alaska LNG)" in March last year, after nearly a year and a half of intensive negotiations and careful evaluation, China National Petroleum Corporation has made significant progress with US developers. The cooperation direction includes purchasing 6 million tons of Alaska LNG per year after exploitation and participating in project development. The estimated investment amount is up to US$4.4 billion.

The United States has previously announced that the total value of the Alaska development project is as high as 44 billion US dollars. Fang Zhenren, chairman of CNPC, also stated at the beginning of this year that in addition to purchasing 6 million tons of gas sources per year, CNPC also seeks to participate in equity. The Ministry of Economic Affairs stated today that the current planned cooperation direction includes purchasing 6 million tons of Alaskan LNG per year after exploitation and participating in project development, but the estimated investment amount is "up to" US$4.4 billion. Through long-term energy procurement and project investment, it will help promote the diversity of natural gas supply, improve supply dispatch flexibility, further strengthen my country's energy resilience, and deepen Taiwan-US cooperation.

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If CNPC purchases up to 6 million tons of Alaskan natural gas, the proportion of natural gas imported by my country from the United States will increase from the current 10% to 35%, and the purchase volume will triple. The Ministry of Economic Affairs reiterated that the Alaska LNG project has geographical advantages and can reach Taiwan directly through the Pacific route, which will help disperse natural gas transportation routes and geographical supply risks. If the project proceeds smoothly according to the planned schedule, it is expected to further inject domestic natural gas supply as early as 2032, which is an important layout for Taiwan to continue to promote the diversification of gas sources.

The Ministry of Economic Affairs emphasized that relevant cooperation will adhere to the principles of mutual benefit, common prosperity and professionalism. CNPC will continue to coordinate with relevant US units on procurement, investment and related cooperation matters, and handle project research and budget submissions in accordance with company procedures. The specific investment arrangement, shareholding ratio and related conditions will be handled in accordance with subsequent negotiations between the two parties and relevant procedures of the commercial contract to expand the company's operations and respond to domestic energy supply needs.

The Ministry of Economic Affairs stated that national energy security is the cornerstone of stable social development. In the future, it will continue to pay attention to the global natural gas market and the promotion of various development projects, and strive to ensure a stable supply of domestic energy through diversified procurement strategies and rolling reviews of domestic gas plans.

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