Taiwan Slams Brakes on LNG Imports from Papua New Guinea

Taiwan has halted spot purchases of liquefied natural gas (LNG) from Papua New Guinea in response to Port Moresby's decision to close Taipei's trade office.

The move is seen as a warning to countries with ties to Taiwan that downgrading unofficial ties could have consequences, according to Jozef Huljak, a PhD candidate in political science at Constantine the Philosopher University in Slovakia.

Papua New Guinea announced on July 16 that it would close Taiwan's representative office, citing its 'One-China policy' and desire to deepen economic ties with Beijing.

Taiwan imports about one-third of Papua New Guinea's LNG exports, but this only accounts for around 8% of Taiwan's total LNG imports.

William Yang, a Northeast Asia analyst at the International Crisis Group, said that Taiwan was likely examining its energy relationship with Papua New Guinea as both a form of leverage and a precautionary measure due to its heavy reliance on LNG.