Taiwan announced on July 28 that it has suspended spot market purchases of liquefied natural gas from Papua New Guinea (PNG), escalating its response to a diplomatic rupture after PNG's foreign minister abruptly ordered the closure of Taiwan's representative office without prior notice or consultation.
The Ministry of Foreign Affairs confirmed the move at its regular morning press briefing, where Lin Chau-horng (林昭宏), director-general of the Bureau of East Asian and Pacific Affairs, said CPC Corporation — Taiwan's state energy company — had completed an internal audit of PNG procurement and formally halted spot purchases. The suspension, he said, would have "considerable impact" on PNG's economic revenue.
Taiwan's halt on spot purchases represents a significant bilateral trade blow. In the first six months of 2026 alone, Taiwan purchased approximately 500,000 metric tons of LNG from PNG on the spot market, and Taiwan ranks among PNG's five largest export destinations. Lin indicated that further adjustments to energy purchases remained under review. CPC Corporation also holds an annual purchase contract for 1.2 million metric tons with international oil traders, providing Taiwan with alternative supply options. Asked whether the suspension might jeopardize Taiwan's own energy security, Lin said CPC had conducted a careful assessment and was confident domestic supply remained secure.
Tkatchenko Bypassed PNG's Own Foreign Ministry
The crisis was set off when PNG Foreign Minister Justin Tkatchenko issued a public statement announcing the immediate and complete closure of Taiwan's representative office — without any prior consultation with Taiwan and, according to Lin, without following the standard civil service procedures within PNG's own foreign affairs ministry. Lin described it as a unilateral action that "seriously damaged relations between the two sides."
Taiwan filed an immediate formal protest and rejected the decision outright. Foreign Minister Lin Chia-lung had already signaled to lawmakers at the Legislative Yuan's Foreign Affairs and National Defense Committee that Taipei had tools at its disposal, though he declined at the time to elaborate. Tuesday's announcement confirmed energy trade as the first lever.
With PNG's representative office in Taipei now closed, communication has shifted to Taiwan's representative office in Port Moresby, which Lin confirmed remains operational. Taiwan is currently engaging senior career officials within PNG's foreign ministry, though no substantive response from the PNG government had been received as of the briefing.
Medical Aid and Scholarships Continue Pending PNG Response
Despite the LNG suspension, Taiwan has chosen to maintain its existing development programs in PNG for the time being. These include a resident agricultural technical mission, donations of medical equipment, medical evacuation and referral services, and scholarships for PNG students. Lin framed the continuation of these programs as an expression of goodwill and evidence of the mutual benefits Taiwan brings to the relationship.
The commitments are conditional, however. Lin said Taiwan would conduct "rolling reviews" of all aid based on how PNG's government responds going forward. He also did not rule out that PNG might take further steps unfavorable to Taiwan, citing the backdrop of growing Chinese influence in the Pacific. Taiwan's government has already mapped out contingency plans for multiple scenarios, Lin added, and would provide further public updates when appropriate.
Taipei Rallies Allies to Press PNG on Representative Office
Taiwan is actively coordinating with like-minded partners to urge PNG's government to recognize that preserving the representative office serves both sides' national interests, Lin said. He added that the government had war-gamed a range of potential developments and would make further announcements when the situation warranted.
