Taiwan's useful LNG ally

Strengthening energy links between Taiwan and the US could impact on power dynamics in the South China Sea

The liquefied natural gas deal Taiwan's CPC Corp signed with US producer Cheniere Energy last week is a huge step in the east Asian nation's transition away from coal and nuclear power. But the focus on seaborne imports also throws a spotlight on the island's capacity concerns and geopolitical vulnerabilities. The $25bn agreement will see Cheniere sell Taiwan 2m tonnes of LNG per year for 25 years from 2021. In 2017, Qatar dominated the import mix with 4.86m t/y, followed by Malaysia at 2.79m t/y and Indonesia with 2m t/y, according to customs data. "From an energy security perspective, the Cheniere-CPC deal is a good one. It will provide Taiwan's state-owned energy company with a stable, l