Climate Ministry Activates Energy Emergency Response Team Amid Middle East Tensions

The Ministry of Climate, Energy and Environment held an “Energy Situation Review Meeting” at the Gyeongin Branch of the Korea Mine Rehabilitation and Mineral Resources Corporation in Jongno-gu, Seoul, on the afternoon of the 2nd. The meeting reviewed the impact of recent Middle East tensions on domestic energy supply and demand, as well as response plans by power utilities. Participants included the Korea Power Exchange, KEPCO, Korea Hydro & Nuclear Power, five power generation companies, and the Korea Energy Economics Institute.

Following U.S.-Israeli airstrikes on Iran on the 28th of last month, uncertainty in the Middle East has grown. However, meeting attendees stated, “The current Middle East situation has not affected domestic power supply.” The government cited reasons such as the typical 3-to-6-month lag before oil price increases influence liquefied natural gas (LNG) prices, and the fact that none of the coal or directly imported LNG purchased by power utilities are sourced from the Middle East.

Nonetheless, the government decided to strengthen monitoring of the Middle East and maintain an emergency response system in case the crisis prolongs, leading to a blockade of the Strait of Hormuz, a surge in oil prices, or disruptions in gas imports. In this regard, the ministry will operate an “Energy Emergency Response Team” alongside power utilities.

Vice Minister of Climate Lee Ho-hyun stated, “The current Middle East situation is extremely serious,” adding, “We will work together to minimize the impact on the energy industry and ensure a stable power supply amid uncertainty.”