Nuclear expansion plans threaten South Korean LNG demand [Gas in Transition]

Nuclear expansion plans threaten South Korean LNG demand [Gas in Transition]

A major turnaround on nuclear policy places South Korea’s long-term LNG prospects in jeopardy. But it remains to be seen whether the sharp fall projected in the fuel’s share of power generation will actually be realised. [Gas in Transition, Volume 3, Issue 2] by: Martin Daniel

Electricity generation is the main determinant of South Korean LNG demand, with a large and increasing proportion of gas supplies used to produce power (see figures 1 and 2). In 2021, about 51% of gas was used to generate electricity, compared with 46% in 2011, according to data from the Korea Energy Economics Institute (KEEI), with these figures excluding power generated from city gas. The plans produced every two years by the Ministry of Trade, Industry and Energy are central to any assessment of future demand for gas and thus LNG. South Korean gas is all imported as LNG and the country has next to no domestic production of its own. 10th Basic Plan for Electricity Supply and Demand In a sharp turnaround in policy, the 10th plan is focused squarely on nuclear power generation, which is projected to rise from 23.4% of total electricity supply in 2018 to ...