A diplomatic dispute between Taiwan and Papua New Guinea has escalated, with potential consequences for energy exports, healthcare cooperation and education.

Taiwan's Ministry of Foreign Affairs announced on 6 November that it would close its representative office in Port Moresby and withdraw its personnel.

The decision follows renewed demands from Papua New Guinea to close the office, which had already faced a closure announcement in July.

Taiwan has also confirmed it will not sign new spot-market contracts to purchase Papua New Guinea's liquefied natural gas.

Taipei says its purchases have represented approximately one-third of PNG's LNG exports, although the exact economic impact of the latest decision has not been independently established.

The changes extend beyond trade. Taiwan says technical assistance, medical missions, scholarships and training programmes will also end.

Taiwan's government has accused China of applying political and economic pressure. That remains Taiwan's allegation, not an independently established explanation for PNG's decisions.

Papua New Guinea maintains diplomatic relations with China, while Taiwan has sought to preserve unofficial relationships across the Pacific.

For PNG, the immediate questions concern the financial impact on gas exports and the future of programmes previously supported by Taiwan.