Korea diversifying LNG imports to ease Middle East dependence: KOGAS chief

Choi Yeon-hye, chief executive officer of Korea Gas Corporation (KOGAS), speaks during a press event in Incheon, Thursday. Courtesy of KOGAS

Korea is pushing to ease its dependence on the Middle East for its liquefied natural gas (LNG) imports in a move to help maintain a stable supply of the energy resource, the head of the state-run gas company said.

Choi Yeon-hye, chief executive officer (CEO) of Korea Gas Corporation (KOGAS), made the remark during a press event held to mark the arrival of LNG imports from Canada through Incheon, just west of Seoul, on Thursday.

"By pursuing a major shift in the paradigm of LNG imports, we have established a supply chain that is stable and sustainable," Choi said.

The KOGAS chief said such efforts are expected to help Korea's dependence on the Middle East for its LNG needs fall below 18 percent this year. The figure stood at 45 percent in 2022 and 24 percent in 2025.

"Currently, not a single Korean LNG carrier is trapped inside the Strait of Hormuz," Choi added.

The chief executive noted KOGAS' investment in LNG Canada reflects Seoul's ongoing effort to diversify energy imports.

KOGAS currently holds a 5 percent stake in LNG Canada, with Shell, a global oil company, holding 40 percent of the shares. Other major investors include China's PetroChina, Malaysia's Petronas and Japan's Mitsubishi Corp.

Through the investment, KOGAS has secured annual LNG imports of 700,000 tons over a 40-year period. Korea's annual LNG demand is estimated at around 35 million tons.

Korea has imported LNG from LNG Canada through the southern city of Tongyeong since September last year.

KOGAS will continue efforts to secure LNG imports from regions beyond the Middle East, including Australia and Mozambique, the company said.