Taiwan Halts $800 Million in Spot LNG Buys From Papua New Guinea

Key facts

• Taiwan has suspended approximately 500,000 metric tons of liquefied natural gas purchases from Papua New Guinea.
• The suspended LNG purchases are valued at roughly $800 million.
• Papua New Guinea ordered the closure of Taiwan's representative office in Port Moresby.
• Taiwan's suspension of LNG buys is a direct response to Papua New Guinea's order.
• The closure of Taiwan's office is seen as aligning with Beijing's 'One China' policy.
• The suspension impacts the energy trade relationship between Taiwan and Papua New Guinea.

Taiwan has suspended approximately 500,000 metric tons of liquefied natural gas (LNG) purchases from Papua New Guinea. This halt in spot-market demand is valued at roughly $800 million. The decision by Taiwan follows an order from Port Moresby, the capital of Papua New Guinea, directing the closure of Taiwan's representative office. This move by Papua New Guinea has directly impacted the energy trade relationship between the two, leading to the suspension of substantial LNG volumes.