Korean LNG imports face uncertain future
Korea’s rapid growth as an LNG importer went into reverse in 2009 as the global recession hit the country’s export led economy. The estimated 13% fall in imports for the year was the largest of any of the world’s LNG importers. The outlook for Korean LNG imports remains far from clear. The government seems intent on placing a greater emphasis on nuclear and renewably sourced power and its attempts to deregulate the LNG import market, currently dominated by Korea Gas, have added to the uncertainty for both Korea Gas and potential new importers. Yet more imports will be required as growth in natural gas consumption returns and long-term contracts expire. LNG Business Review looks at the Korean LNG market, the reasons imports fell by so much in 2009 and the issues for importers in the coming decade.
