Taiwan Haults Spot LNG Purchases from Papua New Guinea Amid Diplomatic Spat

The Taiwanese government has decided to halt spot liquefied natural gas (LNG) purchases from Papua New Guinea (PNG) due to a diplomatic spat. State-owned CPC Corp., Taiwan will suspend buying some 500,000 tonnes of LNG from PNG after the country's foreign minister announced plans to close Taiwan's representative office there.

The move is expected to have a significant impact on PNG's economy as Taiwan accounts for roughly one-third of PNG's LNG exports. CPC has informed its supplier, Exxon Mobil, of the decision and is discussing implementation details.

Taiwanese officials emphasized that the long-term contract to import 1.2 million tonnes of LNG annually from PNG remains in effect, with only spot purchases being suspended for now.