South Korea LNG Market Assessment, By Infrastructure [LNG Liquefaction Plants, LNG Regasification Facilities, LNG Shipping], By End-use [Power Generation, Industrial, Residential and Commercial, Others], By Region, Opportunities and Forecast, 2017-2031F

South Korea LNG market is projected to witness a CAGR of 5.80% during the forecast period 2024-2031, growing from USD 34.94 billion in 2023 to USD 54.86 billion in 2031. 

South Korea LNG Market Size, Share & Forecast 2031

South Korea LNG market is projected to witness a CAGR of 5.80% during the forecast period 2024-2031, growing from USD 34.94 billion in 2023 to USD 54.86 billion in 2031. South Korea is a significant importer of LNG, and it ranks third in the world in terms of LNG imports. As per the International Energy Agency (IEA), South Korea imported 3.07 million tons of LNG in July 2024, showing a surge of 17% from the same month in 2023. Moreover, IEA stated that, since the beginning of the year, LNG imports in South Korea were 26.79 million tons, which is a 4% increase from last year of 25.74 million tons.
Moreover, South Korea is aiming to develop new terminals to manage the volatile supply and demand of LNG, which in turn will improve its supply chain resilience. The efforts are regarded as a part of a broader strategy to adequately align with national net-zero targets and ensure stability for energy supply over the forecast years.
Rise in the Number of Regasification Facilities to Boost Market Growth
In South Korea, the demand for LNG regasification plants is increasing continuously to meet the country's growing energy needs and reduce its reliance on coal. These facilities allow for the efficient conversion of imported LNG into natural gas for electricity generation and industrial use, thereby supporting South Korea's transition to cleaner energy.
For instance, in May 2024, Incheon-based POSCO&nbsp;International announced that it had completed the&nbsp;construction of South Korea's first privately owned LNG storage and regasification facility in Gwangyang, located nearly 300 km away from the south of Seoul. The Gwangyang LNG Terminal is composed of six storage tanks, and it has an overall storage capacity of 930,000 kiloliters, along with a port facility that can dock 180,000 cubic meters of LNG carriers. Till May 2024, the organization has spent nearly USD 759 million to build the terminal. Moreover, the organization stated that the interiors of Tank 5 and Tank 6 are composed of manganese steel that has the ability to withstand a cryogenic temperature of -162 degrees Celsius, thereby making them ideal for storing natural gas.
LNG Import and Storage Terminals to Expedite Market Growth
The establishment of LNG imports and storage facilities has become essential due to the increased need for cleaner energy sources in South Korea. These terminals facilitate the efficient import of LNG and enhance the country&rsquo;s energy security by ensuring a continuous supply during disruptions. These terminals support South Korea&rsquo;s transition to a low-carbon economy. Moreover, South Korea aims to diversify its energy portfolio and ensure a stable and sustainable energy future by investing in these terminals, thereby driving market growth.
For instance, in November 2023, the Institute for Energy Economics &amp; Financial Analysis (IEEFA) highlighted the rapid expansion of LNG import and storage terminals in South Korea and the process of moving toward net-zero emissions. IEEFA added that the nation&rsquo;s government is investing USD 8.7 billion in infrastructure build-out at the stage of planning or construction to boost the receiving capability of fossil fuel.
New Long-Term LNG Supply Agreements Are Amplifying Market Growth
South Korea requires new long-term LNG supply agreements to provide energy security and price stability in a highly volatile market. As the country shifts to cleaner energy sources, ensuring consistent and affordable LNG supply is crucial to meet the increasing demand in power generation and industry. These agreements will help to limit the risks associated with market volatility by providing a consistent supply of LNG to support South Korea's energy goals and economic growth.
For instance, in September 2024, TotalEnergies expanded its LNG operations by engaging in long-term supply agreements with partners in South Korea, China, and Turkey. In South Korea, TotalEnergies will provide 200,000 tons of LNG to HD Hyundai Chemical annually until 2033. This LNG will be mostly used to fuel the country's expanding industrial sector, especially chemical production. Moreover, South Korea&rsquo;s continued investment in extending LNG terminal capacities highlighted the country&rsquo;s growing reliance on imported LNG to power its industrial operations.
Government Initiatives Acting as a Catalyst
Government initiatives in South Korea are crucial&nbsp;to increase LNG usage and energy security. These regulations&nbsp;help to smoothen the process of transition to LNG as a greener energy source by investing in infrastructure, such as regasification terminals and pipelines, and establishing supportive legislation. Moreover, these measures will assist in stabilizing the disruptions in LNG supply and fulfill rising energy demands in a sustainable manner.
For instance, in August 2024, Korea Gas Corporation (KOGAS), South Korea's state-owned natural gas importer and transporter, announced that the roof construction of four LNG storage tanks was completed at the Dangjin LNG terminal. The development is part of Kogas' ongoing efforts to improve the country's LNG infrastructure and increase storage capacity. These new tanks will help the terminal meet the increasing demand for natural gas and ensure a stable supply for domestic and industrial use. The project is consistent with South Korea's broader strategy to preserve energy supplies amid volatile market conditions.
South Chungcheong to Emerge as a Dominating Region
South Chungcheong emerged as the leading region due to its strategic location, extensive LNG infrastructure, and strong industrial base. Moreover, the region hosts significant LNG import terminals, such as Tongyeong terminal, which facilitates efficient receiving and regasification of imported natural gas. Moreover, its geographical location facilitates access to domestic markets and key industrial hubs, thereby making it an important link in the national energy supply chain. Furthermore, South Chungcheong is home to several important power generation facilities that rely on LNG, thereby assuring a consistent need for fuel.
Furthermore, the government&rsquo;s continued investments in LNG infrastructure and technology are expected to increase the region's capacity and efficiency, hence strengthening its market position. As South Korea moves towards greener energy solutions, South Chungcheong's strategic planning, infrastructure development, and strong government support position it as a key region in the country's LNG landscape.
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Future Market Scenario (2024 &ndash; 2031F)
<ul>
<li>The ongoing construction&nbsp;of domestic LNG terminals in South Korea is crucial&nbsp;to improving its energy security in the face of global market fluctuations. This strategy safeguards the country&nbsp;against supply disruptions and positions it&nbsp;to capitalize on future market growth opportunities.</li>
<li>To support the country&rsquo;s transition to cleaner fuels, the Korean government is increasing its LNG research and development (R&amp;D) activities. These research activities focus on improving LNG infrastructure, developing gasification technologies, and promoting the use of LNG in transportation, which, in turn, will reduce greenhouse gas emissions and strengthen the country&rsquo;s domestic energy supply. It, in turn, will lead to ample possibilities for market expedition over the forecast years.</li>
<li>Moreover, the rise in initiatives for South Korean companies to develop privately owned LNG regasification facilities is expected to boost the infrastructure and operational efficiency in the LNG market, thereby catering to the growth opportunities in the forecast years.</li>
</ul>
Report Scope
&ldquo;South Korea LNG Market Assessment, Opportunities and Forecast, 2017-2031F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of South Korea LNG market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Report Attribute
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Details
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Base Year of the Analysis
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2023
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Historical Period
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2017-2022
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Forecast Period
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2024-2031
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Projected Growth Rate
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CAGR of 5.80% between 2024 and 2031
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Revenue Forecast in 2031
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USD 54.86 billion
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Segments Covered
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Infrastructure, End-use
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Regions Covered
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North Chungcheong, South Chungcheong, Gangwon, North Gyeongsang, Gyeonggi, South Gyeongsang, Jeju, North Jeolla, South Jeolla
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Key Companies Profile
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Korea Gas Corporation (KOGAS), SK E&amp;S CO.LTD., Hanyang Corporation, S-Oil Corporation, Hankook Shell Oil Company (HSOC), Korea National Oil Corporation (KNOC), SK Inc., HD Hyundai Oil Bank Co., Ltd.
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;South Korea LNG market&nbsp;has been segmented into the following categories:&nbsp;
<ul>
<li>By Infrastructure</li>
<li>LNG Liquefaction Plants</li>
<li>LNG Regasification Facilities</li>
<li>LNG Shipping</li>
<li>By End-use
<ul>
<li>Power Generation</li>
<li>Industrial</li>
<li>Residential and Commercial</li>
<li>Others</li>
</ul>
</li>
<li>By Region
<ul>
<li>North Chungcheong</li>
<li>South Chungcheong</li>
<li>Gangwon</li>
<li>North Gyeongsang</li>
<li>Gyeonggi</li>
<li>South Gyeongsang</li>
<li>Jeju</li>
<li>North Jeolla</li>
<li>South Jeolla</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
The market participants in South Korea are continuously competing to gain a significant share of the market. South Korean companies are proposing the development of new LNG terminals to manage volatility in their supply and demand dynamics. The terminals include extensive development of the country's LNG infrastructure for a secured supply of energy to establish the nation as a global leader in the LNG market and to meet the nation's energy requirements and sustainability targets.
In March 2024, Hanyang Corporation and GS Energy Corporation Ltd. signed a shareholder agreement to jointly build a Northeast Asia LNG Hub Terminal in Myodo, Yeosu-si, Jeollanamdo. According to the agreement, Hanyang will be constructing the Myodo Port Redevelopment Project site, which will be around 3.12 million square meters in size with its upper facilities, including LNG storage tanks with a maximum capacity of 100,000 tons. The project is yet to receive approval from the government and start its operations by the end of 2027.
Key Players Operating in South Korea LNG Market are:
<ul>
<li>Korea Gas Corporation (KOGAS)</li>
<li>SK E&amp;S CO.LTD.</li>
<li>Hanyang Corporation</li>
<li>S-Oil Corporation</li>
<li>Hankook Shell Oil Company (HSOC)</li>
<li>Korea National Oil Corporation (KNOC)</li>
<li>SK Inc.</li>
<li>HD Hyundai Oil Bank Co., Ltd.</li>
</ul>
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<ul>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?</li>
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South Korea LNG Market Assessment, Opportunities and Forecast, FY2017-FY2031F

South Korea LNG market growth is augmented by factors such as continuous setting up of LNG import and storage terminals, new long-term LNG supply agreements, rise in the number of collaborative LNG projects, etc.

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