U.S. President Donald Trump said Tuesday that Taiwan had agreed to buy 30% of the gas from a proposed liquefied natural gas (LNG) project in Alaska. “Taiwan has just agreed to buy 30% of the gas coming off the pipeline for the next 20 years,” Trump stated during an election rally in Wasilla, Alaska. “That guarantees a success.”

Taiwan’s Energy Hunger Amid the AI Revolution

While the specific terms of the deal cited by Trump were not immediately clear, the economic backdrop is evident. Taiwan, home to semiconductor giant TSMC, has seen a massive surge in energy demand driven by AI-related growth. The self-ruled island relies on imports for more than 90% of its energy supply. Taiwan’s economic affairs ministry projected this summer that its average electricity demand growth rate would climb by about 2.5% a year through 2035—the second-highest forecast in its history, surpassing both Japan and South Korea. Last year, Taiwan’s state-owned CPC Corp reportedly reached an agreement with the project developers to purchase LNG and invest in the pipeline.

Pressure on South Korea and Tariff Threats

Trump’s latest remarks follow his ongoing public pressure campaign on South Korea to finalize its participation in the $50 billion Alaska LNG project. Despite Trump’s repeated claims that Seoul had already committed to the project and would invest an additional $4.4 billion, South Korea maintains that its participation has not been finalized. In response to the hesitation, Trump escalated his rhetoric earlier this month, warning he would charge the country more and threatening to “double the charges” if Seoul failed to sign soon. This prompted speculation in South Korean media that he was referring to higher tariffs.

Glenfarne, the developer behind the Alaska LNG pipeline, reported to the U.S. government earlier this month that the project aims to deliver its first gas in 2029. The White House, Taiwan’s energy ministry, and CPC Corp. did not immediately respond to CNBC’s requests for comment.