Natural gas industry in Korea: current status and outlook

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Yoon, Jae Duck

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Graduate School of Public Administration, Seoul National University
Korean Journal of Policy Studies, Vol.9, pp. 133-152
Korea's natural gas industry has a relatively short history, but it has displayed
a dynamic growth and this growth will continue in the foreseeable future. The
use of natural gas has been promoted due to the government policy to diversify
the energy source to lower dependency on oil and to regulate air pollution,
combined with consumers' preference for high grade energy.
The structural change in Korea's energy use and supply, brought about by the
growth of natural gas market in Korea, is of main interest of this paper.
Particular focus is given to the rapid increase in gas demand and Korea's
nationwide gas supply plan according to which massive facility construction projects
have been undertaken.
The Korea Gas Corporation (Kogas) is currently conducting projects for
expanding its existing facilities and for building new ones. These include: building
more LNG storage tanks, constructing a new LNG receiving terminal, and
extending pipelines to form a nationwide transmission network. Attention is
paid also to the reform of gas pricing mechanism in Korea so that it would provide
with appropriate means for achieving various policy oblectives of the government.
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Graduate School of Public Administration (행정대학원)Dept. of Public Administration (행정학과)Korean Journal of Policy Studies (정책논총, KJPS)Korean Journal of Policy Studies (정책논총) vol.09 (1994)
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