$800 Million in LNG Purchases From Papua New Guinea Halted by Taiwan

Taiwan has suspended its spot-market purchases of liquefied natural gas (LNG) from Papua New Guinea, removing approximately $800 million in demand. The move comes after Port Moresby ordered the closure of Taipei's representative office in recognition of China's One China policy.

The decision only affects Taiwan's spot LNG buys, leaving its long-term supply contract untouched. Under this contract, Taiwan imports 1.2 million metric tons of PNG LNG annually through 2030, accounting for roughly one-third of Papua New Guinea's LNG exports.

Papua New Guinea ships LNG into a market shaped by higher prices and tighter supply following the Iran conflict and security risks around the Strait of Hormuz. Analysts expect producers to redirect cargoes originally intended for Taiwan's spot purchases to other Asian buyers with limited disruption to export volumes.