(193a) Beyond Implications on a Golden Age of Natural Gas in Korea

South Korea is one of the top energy importers in the world where relies on fuel imports for about 97% of its primary energy demand because the country lacks domestic energy reserves. In 2013, the country was the second-largest importer of liquefied natural gas (LNG) just behind Japan, and the fifth-largest net importer of total petroleum and other liquids. South Korea has no international oil or natural gas pipelines and relies exclusively on tanker shipments of LNG and crude oil. However, 27 years after importing the first LNG cargo from Indonesia in November 1986, Korea opened a Golden Age of natural gas by importing more than 40 MTPA of LNG in 2013.

This special speech focuses on providing Korea’s structural driving forces of Golden Age of natural gas. It shares the importance of energy security and cost competitiveness in energy supply system. The following will also be addressed in the speech:

• Unique gas supply system without storage and pipelined natural gas;
• Impact of Korean LNG purchase at spot markets on LNG marketing prices;
• Policy and strategy to lower LNG price and secure the supply;
• The future and a role of natural gas in order to obtain the country’s sustainable growth.