China, which claims Taiwan is part of its territory and opposes the self-governed island's participation in international organisations and exchanges with other countries, previously welcomed PNG's move.

Like many countries, PNG has formal diplomatic relations with China but allows Taiwan to have a representative office in the capital Port Moresby.

Taiwan's spot purchases of liquefied natural gas from Papua New Guinea have stopped, said Michael Lin, head of the Taiwanese foreign ministry's Department of East Asian and Pacific Affairs.

Lin said the government is looking at the possibility of state-owned energy company CPC Corporation halting purchases under existing supply contracts.

The Ministry of Economic Affairs said it will comply with the decision "provided that energy security and the stability of gas supply" are ensured.

Taiwan is a major market for Papua New Guinea's LNG.

The South Pacific Nation accounted for eight percent of Taiwan's natural gas imports in 2025, compared with Qatar (34 percent), Australia (33 percent) and the United States (10 percent), official figures show.

"This year, due to frequent conflicts in the Middle East, import volumes from various countries have shifted as a result of policies to diversify gas sources, and Papua New Guinea's share will also be reduced," the economic affairs ministry said.

PNG Foreign Minister Justin Tkatchenko told AFP previously that the decison to close Taipei's office did not affect commercial contracts between CPC and PNG's liquefied natural gas exporter, PNG LNG.

Taiwan's office in Port Moresby remained operational, Lin said.

Taiwan's technical mission and other aid efforts had not been affected but the government will review its policy "on a rolling basis" pending PNG's response, Lin said.