Taiwan Halts $800 Million in Spot LNG Purchases from Papua New Guinea After Office Closure Order

Taiwan has suspended approximately 500,000 metric tons of liquefied natural gas (LNG) spot purchases from Papua New Guinea every six months, removing roughly $800 million in spot-market demand. The move follows Port Moresby's order to close Taipei's representative office in recognition of its One China policy. Taiwan's long-term LNG supply contract remains untouched, with Taipei continuing to import 1.2 million metric tons annually through 2030, accounting for about one-third of Papua New Guinea's LNG exports. China's Foreign Minister Wang Yi welcomed the decision, while the U.S. State Department expressed deep concern. Taiwan also warned it is reviewing development assistance and other economic cooperation with PNG. Analysts expect producers to redirect cargoes originally intended for Taiwan's spot purchases to other Asian buyers with limited disruption to export volumes. LNG generates roughly half of Papua New Guinea's export earnings, while Taiwan imports about 95% of its energy, with natural gas generating nearly half of its electricity.