《TAIPEI TIMES》 Taiwan suspends LNG from PNG over office closure

A handout photo dated May 17, 2011, made available by state-run CPC Corp, Taiwan, on March 28, 2014, shows a liquefied natural gas tanker docked at the company’s LNG terminal in Taichung. Photo: EPA

By Lee I-chia / Staff reporter The Ministry of Foreign Affairs （MOFA） yesterday said it has temporarily suspended spot market purchases of liquefied natural gas （LNG） from Papua New Guinea （PNG） after the country’s foreign minister earlier this month unilaterally announced that Taiwan’s representative office there would be closed.

PNG Minister of Foreign Affairs Justin Tkatchenko on July 16 said that his government had decided to close Taiwan’s representative office in Port Moresby.

The cessation of operations and the formal closure of the physical presence of Taiwan’s representative office was an “administrative action” to “reaffirm Papua New Guinea’s one China policy,” a statement posted on Tkatchenko’s Facebook page said.

The Chinese Ministry of Foreign Affairs said the move was “highly appreciated” by its government.

MOFA lodged a formal protest on the same day, saying that the decision was made unilaterally and without prior consultation, and that Taiwan does not accept the decision and its representative office would continue normal operations.

Minister of Foreign Affairs Lin Chia-lung （林佳龍） on July 17 said Taiwan is reassessing its economic ties with PNG, including purchases of large amounts of LNG annually, which is a major source of revenue for the country.

Department of East Asian and Pacific Affairs Director-General Michael Lin （林昭宏） said that the ministry “strongly protests PNG’s unilateral decision.”

The PNG foreign minister had bypassed the civil service decisionmaking process and issued a statement directly from his office, forcing Taiwan to close its representative office without consultation in advance — an action that severely damages bilateral relations, Lin told a news conference.

Taiwan has promoted cooperation projects in PNG, including in healthcare, agricultural technology and talent development, he said, adding that the nation has always been willing to discuss further cooperation in trade and energy with the PNG government.

“Taiwan continues to make efforts to communicate with the PNG government, to help them understand that enhancing bilateral cooperation and exchanges would better serve the national interests of both sides,” he said.

Taiwan has prepared responses for any potential outcomes, but specific details cannot be disclosed at this time, he added.

Taiwan is one of PNG’s top five export destinations, particularly for LNG, and after reviewing the nation’s LNG procurement, the government has officially suspended spot market purchases from PNG, Lin said.

Taiwan will continue to review its overall energy demand and supply allocation to determine whether to further adjust its LNG procurement from PNG, he added.

Data from the Ministry of Economic Affairs and state-run CPC Corp, Taiwan （台灣中油） show that Taiwan’s LNG spot market purchases from PNG in the first half of this year totaled about 500,000 tonnes, Lin said.

Asked if the suspension might cause a supply shortage in Taiwan, he said that CPC evaluated the situation before making a decision.

CPC has a long-term contract with ExxonMobil for 1.2 million tonnes of LNG per year, which has sources other than PNG, he added.

Regarding Taiwan’s aid programs in PNG, including technical agricultural missions, medical referrals and scholarship programs, Lin said they would continue for the time being to show Taiwan’s goodwill and the advantages of transparent cooperation.

However, rolling reviews would be conducted depending on the PNG government’s response, he added.

Facing growing pressure from China, the possibility of PNG adopting further detrimental measures cannot be excluded, Lin said, adding that Taiwan will continue to engage with like-minded nations to voice their support for Taiwan, as well as protect the safety of the representative office staff and Taiwan’s diplomatic interests.

新聞來源：TAIPEI TIMES