South Korea Plans Big Investment in Domestic Gas Infrastructure

South Korea’s Ministry of Trade, Industry & Energy plans to invest 7 trillion won ($0.01 trillion) over next 15 years in country’s gas infrastructure.

According to a long-term plan for natural gas procurement for the period of 2015 to 2029 released by the Ministry Thursday, investments will focus on building more city gas supply infrastructure while diversifying natural gas supply sources, BusinessKorea, a news portal reported.

South Korea’s total LNG usage for city gas supply is expected to increase 2.06 percent per year until 2029 while for power generation LNG usage is expected to fall 4.17 percent, the news portal reported.

The destination clause for the LNG imports is also set to go, BusinessKorea said citing the plan. LNG imported from the United States until 2037, amounting to 2.8 million tons a year, becomes free from the clause, and the ministry is planning to expand the deregulation to gas import contracts with other countries as well.

Furthermore, the U.S., Iran and other countries have been added as the sources of procurement, which increases the source from 7 to 11 by 2029, the news portal added.