Taiwan state-backed energy companies could buy an extra $200 bill of US LNG in 10 years.
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This would bump up the percentage of US LNG the country receives by a third to help narrow the trade deficit, Taiwan’s economy minister said last week.
Taiwan President, Lai Ching-te has pledged to seek a zero-tariff regime with the US and buy more from and invest more in the country, and said that Taipei would not retaliate in response to the tariffs - now put on a 90-day pause by President Trump.
Taiwan had been due to be hit with a 32% tariff, sending its stock market plummeting, though the key semi-conductor industry was excluded.
Taking lawmakers' questions in parliament about the Government's response to the tariffs, Economy Minister, Kuo Jyh-huei, said the plan being discussed was around $200 bill in purchases over the coming decade by the government and state-run companies.
This amount did not include purchases by private companies, he added.
When asked about raising the proportion of Taiwan's US LNG imports from 10% to 30% of the total, Kuo said that was the ‘direction’ being eyed.
Most of Taiwan's LNG now comes from Australia or Qatar.
Speaking to reporters, Taiwan Foreign Minister, Lin Chia-lung, said there was now breathing space to have more detailed and in-depth talks with the US.
"We hope to take advantage of the huge US market, their excellent technology capital and talent, to form a Taiwan/US coalition, a joint fleet approach," he explained.
In addition, state-owned CPC Corp said it planned to boost its procurement of US energy products — including LNG and crude oil - in response to the tariff on Taiwanese exports, sources told newswires.
Taiwan’s Ministry of Economic Affairs recently said it aimed for US-sourced LNG to account for 30% of the country’s total LNG imports.
Last year, US LNG made up 10% of CPC’s imports, sourced from 14 different countries, the Ministry said.
CPC sources said the target could be met by ramping up existing LNG imports from the US or seeking new supply channels, such as from Alaska.
The company claimed it had signed a term sheet with US suppliers to import LNG from Alaska, although the project could take five to seven years to come online.
CPC confirmed it would significantly increase US LNG imports over the next four years.
