South Korea LNG long-term outlook 2020

Includes details of the LNG supply-demand balance, regas infrastructure, contract developments, market structure and policy. Key highlights this update : - LNG demand falls towards 38 mmtpa in the early 2020’s due to new coal and nuclear capacity in the power sector - Long-term prospects for demand remain positive with phase of old coal and nuclear power capacity and steady growth from industrial and commercial sectors, but growth will be tempered by slowing macroeconomics, efficiency and rise of new energies like hydrogen - Energy policy is currently in flux with the release of the new 9th Basic Plan underway and announcement of a 2050 carbon neutrality target; this provides the biggest uncertainty to future LNG demand - Competition from independent buyers will increasingly challenge KOGAS’ market share and with KOGAS now approved to negotiate 'individual tariffs' with gas buyers, reducing average cost of supply via new deals and price reviews will be particularly important.