Papua New Guinea (PNG) is poised to supply Taiwan with its liquefied natural gas (LNG) as the latter phases out nuclear power plants by the end of 2025. With Taiwan's demand for energy expected to increase during its transition to renewable power capacity, PNG is set to become a crucial supplier of LNG and raw materials, which will create job opportunities and boost the country's export revenue.
PNG is currently operating the US$19 billion (K67 billion) PNG LNG project, and the US$10 billion (K35 billion) Papua LNG project is set to commence production in 2027, followed by the P’nyang LNG and the Pasca A oil and gas project. The demand for LNG is growing worldwide, particularly in Asian markets, according to TotalEnergies Limited, the developer of the Papua LNG project.
Taiwan is PNG's fourth-largest export market and fifth-largest trading partner, with a trade volume exceeding US$1.4 billion (K4.9) in 2022. According to the Taipei Economic and Cultural Office in PNG representative, Ben Wang, "Taiwan's nuclear power phase-out by the end of 2025 will create a huge energy demand gap during its transition to renewable power capacity, and PNG can seize this opportunity to become a vital LNG and raw materials supplier to Taiwan."
Petroleum gas was PNG's top export in 2020, amounting to US$2.95 billion (K10.4 billion). While the Taiwan Ministry of Economic Affairs (MOEA) estimates that Taiwan's energy demand will catch up with supply in 2023, international reports suggest that the MOEA has failed to consider the rapid increase in energy demand across Taiwan. Taiwan's annual power consumption increased by 2.1% in 2020, which is above average when compared with the past decade, and is expected to grow by an average of 2.5% every year until 2027.
