Natural Gas Demand of 50,000 Tons in 2034... 5.6 Trillion Won Investment to Expand Supply Infrastructure

[Sejong=Asia Economy Reporter Kwon Haeyoung] As domestic natural gas demand (base demand) is expected to increase by 15% to 47.97 million tons by 2034, the government will invest 5.6 trillion won in building supply infrastructure.

The Ministry of Trade, Industry and Energy announced on the 27th that it has finalized and announced the "14th Long-term Natural Gas Supply and Demand Plan," which includes long-term natural gas demand forecasts, import strategies, supply and demand management, and supply facility plans from this year through 2034.

According to this plan, which is established every two years, domestic natural gas demand is expected to increase by about 15%, from 41.69 million tons this year to 47.97 million tons in 2034. This corresponds to an average annual increase of 1.09% per year.

In particular, to stably manage the volatility of natural gas demand for power generation, this plan forecasts "supply and demand management demand" for the first time in addition to the existing "base demand" forecast. Accordingly, total natural gas demand is expected to increase from 45.59 million tons this year to 52.53 million tons in 2034.

From the import and supply management perspective, the government explained that it will diversify import sources and secure flexibility in import conditions such as easing destination restrictions to enhance supply stability. Additionally, to mitigate price fluctuations caused by oil price volatility, it plans to diversify import price calculation methods and secure price stability through medium-term contracts (5-10 years).

The government plans to invest a total of 5.5946 trillion won by 2034 to expand natural gas supply facilities and strengthen the safety of operating supply infrastructure.

For stable supply, it will construct the Korea Gas Corporation's 5th base in Dangjin to secure a storage capacity of 18.4 million cubic meters by 2034 and additionally build 789 km of main natural gas pipelines. It also aims to supply city gas to four local governments including Taebaek and Cheongyang within this year, and distribute liquefied petroleum gas (LPG) pipeline networks to 13 counties including Hwacheon and Cheongsong, completing a gas supply system in all 229 cities, counties, and districts nationwide.

Furthermore, institutional improvements and infrastructure expansion will be promoted to revitalize new natural gas markets such as liquefied natural gas (LNG) bunkering and the hydrogen industry.

An official from the Ministry of Trade, Industry and Energy said, "Stable supply and demand of natural gas, a bridging energy source in the carbon-neutral era, has become important," adding, "This supply and demand plan strengthened supply stability by forecasting supply and demand management demand in addition to base demand and promoting an increase in mandatory stockpiling volumes."

This content was produced with the assistance of AI translation services.