Taipei: State-owned CPC Corp., Taiwan will suspend spot purchases of liquefied natural gas (LNG) from Papua New Guinea (PNG) in response to plans to close Taiwan's representative office there, a senior Taiwanese diplomat said Tuesday. Michael Lin, director-general of the Ministry of Foreign Affairs' Department of East Asian and Pacific Affairs, announced that Taiwan would not purchase approximately 500,000 tonnes of LNG from PNG.
According to Focus Taiwan, CPC has already informed its supplier, Exxon Mobil, of the decision, and the two sides are currently discussing implementation details. Addressing concerns over Taiwan's energy security, Lin assured that CPC had carefully evaluated the decision beforehand and would source replacement LNG supplies from other countries to ensure a stable supply.
Lin emphasized that Taiwan's long-term contract to import 1.2 million tonnes of LNG annually from PNG remains in effect, with only spot purchases being suspended for the time being. He added that the government will determine whether to resume spot LNG imports or adopt additional retaliatory measures depending on PNG's formal response to Taiwan's actions.
As Taiwan accounts for roughly one-third of PNG's LNG exports, Lin indicated that this is expected to have a significant impact on PNG's economy. Despite the diplomatic dispute, Taiwan will continue its agricultural and medical assistance programs in PNG and maintain scholarship opportunities for PNG students studying in Taiwan as a gesture of goodwill.
The dispute began after PNG Foreign Minister Justin Tkatchenko announced on July 16 that the government had ordered the immediate closure of Taiwan's representative office in the country, citing PNG's adherence to the "one-China" policy. Taiwan lodged a formal protest with the PNG government while maintaining that its representative office remains operational despite the announcement.
Last week, Foreign Minister Lin Chia-lung remarked that Tkatchenko's statement reflected the minister's personal position rather than a formal decision by the PNG Cabinet. According to the minister, officials and diplomats in PNG hold differing views on relations with Taiwan, and the country's Cabinet is still conducting a two-year review of its Taiwan policy, with no final consensus reached yet.