Taiwan reviewing gas imports after Papua New Guinea orders office closure

New Taipei, July 18 (CNA) Taiwan is reassessing its economic ties with Papua New Guinea (PNG) after the Pacific nation's decision to close Taipei's representative office in the country, including natural gas purchases, Foreign Minister Lin Chia‑lung (林佳龍) said Saturday.

Speaking to reporters, Lin said the ministry had convened a meeting to review Taiwan's economic exchanges with PNG after its unexpected announcement Wednesday ordering the immediate closure of the Taipei Economic Office in Port Moresby.

Among potential responses, Lin said Taiwan is reviewing its liquefied natural gas (LNG) purchases from PNG, noting that imports of about 1.2 million tons annually accounted for roughly one-third of PNG's LNG exports and were a major source of revenue for the country.

In 2024, PNG exported US$5.36 billion worth of LNG, making it the world's ninth-largest LNG exporter. Its top markets were Japan, China, Taiwan, South Korea and Malaysia, according to the Observatory of Economic Complexity.

LNG accounts for more than 40 percent of Papua New Guinea's total exports, according to the country's National Statistical Office.

Meanwhile, Lin noted that Taiwan's technical missions in PNG focused on agriculture and fisheries have created jobs and contributed to economic development.

In a news release Wednesday, PNG Foreign Minister Justin Tkatchenko said the government ordered the immediate closure of Taiwan's representative office, noting the decision underscored the country's commitment to its "one China" policy.

Taiwan's government rejected PNG's unilateral decision, lodged a protest, and pledged to keep its office operating as normal.

PNG's government held no consultations or discussions with Taipei during the process, the minister said at an event in New Taipei.

Lin attributed PNG's decision to Beijing's political and economic coercion, while expressing gratitude to the United States for voicing support for Taiwan.

A spokesperson for the U.S. State Department told CNA via an email reply on Friday that PNG's move is another example of Beijing's efforts to intimidate Taiwan.

Taiwan's representative office in PNG was established in 1990 after a trade agreement signed the previous year, despite the absence of formal diplomatic ties.