Taiwan Halts LNG Purchases from Papua New Guinea Amid Trade Office Closure

Taiwan has halted spot purchases of natural gas from Papua New Guinea in response to Port Moresby's decision to close Taipei's trade office. The move is seen as a warning that countries with ties to Taiwan could face consequences for downgrading unofficial relations.

The stoppage of liquefied natural gas (LNG) spot purchases follows Taipei's review of imports originating from Papua New Guinea, which accounts for about one-third of PNG's LNG exports, roughly 1.2 million metric tons a year.

Analysts say the move is a signal that Taiwan is becoming more willing to attach consequences to governments that reduce cooperation with Taiwan, but still stop short of outright retaliation.