Taiwan Strengthens Energy Resilience With Planned Purchases of American LNG

In the run-up to Lunar New Year, Taiwan is looking to keep the lights burning brightly.

The Taiwanese Ministry of Energy pledged on February 5 to increase its purchases of liquefied natural gas (LNG) from the United States for energy generation and reduce its reliance on other providers.

The announcement showcases Taipei’s commitment to strengthening its energy resilience amid growing Chinese pressure targeting the island’s electricity grid.  

Taiwan Accelerates U.S. Investment Plans

Much of Taiwan’s grid relies on LNG for energy generation, with natural gas supplying nearly half of the island’s electricity — a share that increased sharply after Taipei shut down its last operating nuclear plant in May 2025. Taiwan currently sources 10 percent of its LNG from the United States, with Qatar and Australia collectively providing nearly two-thirds of the island’s total natural gas imports. The announcement builds on a March 2025 agreement between CPC, a state-owned energy company, and the Alaska Gasline Development Corporation to purchase LNG from the Alaska LNG Project, an ongoing project to bring gas from the state’s North Slope to international markets.

The announcement also follows Taiwanese President Lai Ching-te’s February 4 speech in which he pledged to invest in a range of strategic sectors across the United States, including artificial intelligence (AI), drones, and critical minerals. The planned purchase schedule complements the January 15 announcement of a new trade deal between Washington and Taipei that reduces American tariffs on Taiwanese goods to 15 percent in exchange for a $250 billion Taiwanese investment in U.S. semiconductor production.

China Seeking Avenues To Cut Off Taiwan’s Energy Supplies

China has increasingly targeted Taiwan’s energy sector as a key aspect of its efforts to seize the island without resorting to all-out conflict. During their latest exercises in December, Chinese military and coast guard forces deployed to cover the country’s largest LNG terminals while pledging  for the first time to uphold “all-dimensional deterrence outside the island chain.” The maneuvers signaled Beijing’s ability to enact a snap quarantine of the island. Other recent exercises have featured deployments across the First Island Chain —which runs from Japan to Malaysia — that would allow Chinese forces to exercise an energy-focused embargo at distance from Taiwan.

These drills often operate in concert with escalating Chinese cyberattacks against Taiwan’s grid infrastructure, alongside other critical sectors such as health care and telecommunications. The Taiwanese National Security Bureau noted in January that Chinese hackers had increasingly targeted industrial control systems — manipulations of these systems could cause rolling blackouts across the island.

Washington Should Bolster Taipei’s Energy Resilience

Taiwan’s purchases of American LNG offer a viable pathway for the island to bolster its energy resilience while contributing to strong trade ties with the United States.

Taipei, along with Washington, should complement these efforts by working with other regional partners such as Japan, Australia, and South Korea to build a regional LNG strategic stockpile in the event of a crisis. The United States should consider making Taiwanese energy infrastructure projects eligible for federal funding by ensuring that the island can benefit from the European Energy Security and Diversification Act and the Development Finance Corporation.

The United States can also assist Taiwan in strengthening the resilience of its domestic electricity grid, particularly by offering cyber defense assistance alongside Australia and other partners in the “Five Eyes” intelligence-sharing alliance. These initiatives should reinforce Taipei’s own efforts in improving public-private cooperation to secure critical infrastructure and deter Chinese efforts to destabilize Taiwan.

Jack Burnham is a senior research analyst in the China Program at the Foundation for Defense of Democracies (FDD). For more analysis from Jack and FDD, please subscribe HERE. Follow Jack on X @JackBurnham802. Follow FDD on X @FDD. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.