Korea says LNG supply stable despite Middle East risks

QatarEnergy's liquefied natural gas production facilities in Ras Laffan Industrial City, Qatar / Reuters-Yonhap

Cheong Wa Dae said Friday that Korea’s natural gas supply remains stable despite rising concerns over potential disruptions to Qatari liquefied natural gas (LNG) imports due to heightened geopolitical tensions in the Middle East.

In a press notice, the presidential office said LNG imports from Qatar account for about 14 percent of the country’s total this year, adding that alternative sources are available to ensure stable supply.

“There are no issues with gas supply,” it said.

According to the Ministry of Trade, Industry and Resources, some replacement volumes have already been secured, with additional long-term supplies arranged from the United States, Southeast Asia and Australia.

The ministry also assured that it has sufficient stockpiling capacity, noting that while the legally mandated reserve is about nine days’ worth, actual holdings far exceed that level.

The remarks came after QatarEnergy, the state-run energy firm, warned it could declare force majeure on long-term supply contracts with countries including Korea following attacks on major LNG facilities.

Force majeure is a term used in contracts to free parties from liability or obligation when an extraordinary event or circumstance beyond their control prevents them from fulfilling contractual duties.

In response, Korea Gas Corp. said it will closely monitor global LNG supply conditions and prices to prepare for a prolonged Middle East crisis and ensure stable domestic natural gas supply.

The presidential office also addressed concerns over naphtha supply, saying it is maintaining close communication with industry players and supporting efforts to secure alternative imports.

“We plan to implement export control measures to minimize overseas outflows of naphtha, as previously announced,” it said, adding that additional steps to stabilize the industrial supply chain are under review.

Naphtha, a key petrochemical feedstock, has come under supply pressure amid escalating tensions in the Middle East, including Iran’s moves to restrict passage through the Strait of Hormuz, a vital global shipping route.