Taipei: 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 said Saturday.

According to Focus Taiwan, Lin stated that the ministry had convened a meeting to review Taiwan's economic exchanges with PNG following its unexpected announcement Wednesday ordering the immediate closure of the Taipei Economic Office in Port Moresby. Among potential responses, Taiwan is reviewing its liquefied natural gas (LNG) purchases from PNG. Lin highlighted that Taiwan imports about 1.2 million tons of LNG annually from PNG, which accounts for roughly one-third of PNG's LNG exports and serves as a significant revenue source for the country.

In 2024, PNG exported US$5.36 billion worth of LNG, ranking as the world's ninth-largest LNG exporter. Its primary markets included Japan, China, Taiwan, South Korea, and Malaysia, as reported by the Observatory of Economic Complexity. Additionally, LNG constitutes over 40 percent of Papua New Guinea's total exports, according to the country's National Statistical Office. Lin also noted Taiwan's technical missions in PNG, which focus on agriculture and fisheries, have contributed to job creation and economic development.

In a news release Wednesday, PNG Foreign Minister Justin Tkatchenko announced the immediate closure of Taiwan's representative office, emphasizing the decision aligns with the country's "one China" policy. Taiwan's government opposed PNG's unilateral decision, lodged a protest, and vowed to maintain its office operations as usual.

Taiwan's Foreign Minister Lin attributed PNG's decision to Beijing's political and economic coercion, while expressing appreciation for the United States' support for Taiwan. A U.S. State Department spokesperson informed CNA via email that PNG's move exemplifies Beijing's efforts to intimidate Taiwan.

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