South Korean gas demand is forecast to drop 5 percent over the following 15 years according to the country’s Ministry of Trade, Industry and Energy (MOTIE).
The ministry expects the demand for gas to drop to 34.65 million tons of LNG equivalent in 2029 from the current 36.49 million tons as the use of gas for power generation is expected to dwindle down to 9.48 million tons by 2029.
It is also expected that the domestic and industrial use of LNG will grow to 25.17 million tons in 2029 from 18.53 million tons in 2014.
Ministry added in its statement on Monday that it will invest around US$6 billion in the expansion of domestic gas supply facilities and it intends to cooperate with China and Japan in procuring and diversifying its LNG supply sources. Currently, South Korea imports LNG from seven countries but it is looking to expand the number by additional four countries through mid- and long- term LNG contracts in 2029.
South Korea will also turn its focus to renegotiating the expiring LNG supply contracts with an aim to secure more flexible terms and possibly exclude destination clauses.
LNG World News Staff