The Government to Check Gas Status Weekly...Supply Stabilization Measures if Necessary

Ministry of Industry Holds 'Natural Gas Supply and Demand Status Review Meeting'

Russian Gas Supply Cut Off at Polish Gas Pipeline
(Warsaw AFP=Yonhap News) A view of the gas pipeline at the Lembelszczyzna natural gas relay station near Warsaw, the capital of Poland, on April 27 (local time). On this day, Russia completely cut off gas supplies to Poland and Bulgaria, members of the European Union (EU) and the North Atlantic Treaty Organization (NATO), which have been heavily dependent on Russian natural gas. 2022.4.28
leekm@yna.co.kr
(End)


＜Copyright(c) Yonhap News Agency, Unauthorized reproduction and redistribution prohibited＞

[Asia Economy Sejong=Reporter Lee Jun-hyung] The government will monitor the supply and demand status of natural gas every week. This decision comes from the need to stabilize the supply of natural gas, a major energy source, ahead of the winter season.

The Ministry of Trade, Industry and Energy announced on the 7th that it held a 'Natural Gas Supply and Demand Status Review Meeting' with Korea Gas Corporation and private liquefied natural gas (LNG) direct importers to strengthen domestic natural gas supply management. The background of this meeting is the suspension of Nord Stream supply by Russia. Recently, Russia halted the operation of the Nord Stream pipeline supplying gas to Europe, causing international natural gas prices to surge.

Accordingly, at the meeting, the Ministry reviewed the supply and demand status and winter preparedness plans of the Gas Corporation and private direct importers. The Gas Corporation reported that it is managing gas supply stably based on long-term contract volumes. Considering recent instability in the international gas market, the Gas Corporation plans to set this winter's gas demand forecast higher than last year and secure necessary volumes early through spot purchases and overseas equity investment imports. It also decided to reduce LNG consumption by partially substituting city gas feedstock with liquefied petroleum gas (LPG), as LNG prices are rapidly rising.

[Image source=Reuters Yonhap News]

Private direct importers also expressed their intention to secure the necessary volumes for winter stably and strengthen inventory management. They stated that in emergencies, they will contribute to stabilizing domestic gas supply by exchanging volumes with the Gas Corporation.

The Ministry plans to check the domestic gas supply and demand status weekly. If necessary, it will issue adjustment orders regarding export and import volumes and timing to private direct importers to stabilize supply and demand.

Yoo Beop-min, Director of the Resource Industry Policy Bureau at the Ministry, said, "The government is taking the current international natural gas market situation very seriously as an emergency." He added, "We plan to closely monitor the international natural gas market trends and the supply management status of the Gas Corporation and direct importers every week." Yoo also stated, "To reduce natural gas demand, we will actively implement LPG co-firing, industrial fuel substitution, and winter city gas consumption reduction programs. If necessary, we will also consult with relevant authorities on actively utilizing alternative power sources."

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