2 weeks Ago By Korea Bizwire
On November 4, Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and CEO of QatarEnergy (center left), met with Choi Yeon-hye, President of Korea Gas Corporation (center right), to discuss cooperation between the two organizations. (Yonhap) SEOUL, Nov. 24 (Korea Bizwire) – As former U.
S. President Donald Trump positions for the return to the White House, South Korea is considering expanding its purchase of American energy as part of its strategy to manage trade pressures from the U.S.
This move is also expected to strengthen South Korea’s negotiating power with its traditional energy suppliers in the Middle East, experts suggest. South Korea, the world’s third-largest importer of liquefied natural gas (LNG), is seeking to diversify its energy sources. This shift comes amid long-term negotiations with Qatar, one of its key suppliers.
Earlier this month, Qatar’s Energy Minister and CEO of QatarEnergy, Saad Sherida Al-Kaabi, visited Seoul to discuss continued collaboration with Choi Yeon-hye, CEO of Korea Gas Corporation (KOGAS). QatarEnergy, the world’s largest LNG producer, emphasized KOGAS’s importance as a major client. KOGAS has existing contracts with Qatar to import 4.
92 million tons of LNG annually, with additional agreements to bring in 2.1 million tons per year starting in 2026. However, KOGAS is now bidding for new long-term contracts beyond 2028, inviting participation from both Qatar and U.
S.-based energy firms. With Qatar planning to expand its annual LNG production by 85% to 142 million tons by 2030, it aims to maintain KOGAS as a key customer.
Meanwhile, KOGAS’s ability to consider American LNG provides leverage in negotiating terms with Middle Eastern suppliers, particularly concerning restrictive destination clauses. Korea Gas Corporation Incheon Production Center These clauses prevent the resale of LNG purchased from Qatar to third-party markets, a condition South Korea has long sought to relax to address supply-demand imbalances. Industry insiders believe the availability of U.
S. LNG has strengthened KOGAS’s hand in pressing for more flexible terms. The broader context of South Korea’s energy policy shift is rooted in the increasing role of American energy in its import portfolio.
Since the first Trump administration, South Korea’s imports of U.S. crude oil and LNG have surged, making the U.
S. its second-largest supplier of crude and fourth-largest supplier of LNG as of 2023. Government officials acknowledge that expanding U.
S. energy imports could help manage trade imbalances with the U.S.
while enhancing energy security by reducing reliance on Middle Eastern sources. A senior official from the Ministry of Trade, Industry, and Energy noted, “We see the U.S.
market as a valuable option in our efforts to diversify energy imports.” SK Gas announced on April 22 that it had completed the unloading and cooldown process—gradual cooling of tanks and pipelines—after the LNG carrier Grace Cosmos, carrying approximately 65,000 tons of LNG, docked at Berth 2 of the Korea Energy Terminal (KET) in Ulsan on April 5. The photo shows the Grace Cosmos at the SK Gas Ulsan LNG Terminal.
(Yonhap) The government is also exploring ways to increase energy imports from the U.S. in anticipation of Trump’s possible return to power, aligning with his focus on narrowing trade deficits.
By redirecting a portion of its Middle Eastern energy purchases to the U.S., South Korea could achieve a balance in trade without incurring significant additional economic burdens while reducing security risks tied to reliance on Middle Eastern oil and gas.
M. H. Lee (mhlee@koreabizwire.
com).
