Taiwan Halts PNG LNG Imports Amid Diplomatic Row

Taiwan's CPC Corp has suspended spot market purchases of liquefied natural gas (LNG) from Papua New Guinea due to a diplomatic row. The move affects about 500,000 tonnes of LNG per year and comes after Papua New Guinea closed Taiwan's representative office in Port Moresby earlier this month.

The suspension is not expected to impact Taiwan's long-term contract to import 1.2 million tonnes of LNG annually from Papua New Guinea. However, it could have significant consequences for the Pacific island nation's economy as Taiwan accounts for about one-third of Papua New Guinea's LNG exports.

The Ministry of Foreign Affairs said that the government would determine whether to resume spot LNG imports or take additional retaliatory measures depending on Papua New Guinea's formal response to Taiwan's action. The ministry also noted that Taiwan has prepared response measures for any potential outcomes, but specific details cannot be disclosed at present.