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Taiwan suspends $800M of PNG LNG spot buys every six months

The suspension removes about 500,000 metric tons of semi annual spot demand, while Taiwan says it will keep importing 1.2 million metric tons of PNG LNG annually through 2030.

Reported · Written up by our desk · Energy

Taiwan has suspended spot-market purchases of liquefied natural gas from Papua New Guinea on a recurring six month basis, cutting roughly $800 million in spot demand, according to OilPrice.

The change follows Papua New Guinea’s order to close Taipei’s representative office, with Taiwan saying the suspension affects spot cargoes rather than its long term LNG agreement.

Taipei will continue importing 1.2 million metric tons of PNG LNG each year through 2030, a contract that covers about one third of Papua New Guinea’s LNG exports.

The outlet notes Taiwan imports about 95% of its energy, and natural gas provides nearly half of its electricity after the retirement of its final nuclear reactor, with spot cargoes offering flexibility during high demand periods while long term contracts secure baseload supply.

Latest closeNat gas $2.680 ▼3.1%

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