South Korea has imported an unprecedented amount of liquefied natural gas (LNG) from the United States this year, more than ever before. According to data from the Korea International Trade Association, LNG imports from the Middle East have decreased by 66% to 2.42 million tons from 7.09 million tons this year until September, accounting for only 7% of Korea's total LNG imports.
Growth in Imports from North America
In contrast, imports from North America have more than doubled, rising to 7.82 million tons from 3.85 million tons, with this region's share approaching one-quarter of Korea's total imports. Overall, South Korea's LNG imports from January to September have decreased by 6.4%, reaching 32.87 million tons.
Of the total North American imports, shipments from Canada have surged by 587.6% to 2.97 million tons this year compared to 432,645 tons last year, while shipments from the United States have increased by 41.7% to 4.85 million tons from 3.42 million tons.
Impact of War on LNG Supply
Qatar, as one of the main LNG suppliers for Korea, lost 17% of its LNG export capacity after Iranian missiles were deployed at the Ras Laffan industrial facilities in March. Imports from Qatar, which was the third-largest LNG supplier for Korea last year, have decreased by 68.6% to 1.7 million tons, with no deliveries made from April to June or in August and September.
In light of these developments, Korea Gas Corporation is entering into long-term contracts for energy supply from North America to increase its self-sufficiency rate to 10 to 15%. The company signed a contract last August to purchase 3.3 million tons of LNG from the United States and agreed in May this year to buy another 700,000 tons from British company BP for a duration of 10 years.
The company has also acquired a 5% stake in Canadian LNG, which will provide 700,000 tons annually for 40 years, increasing to 1.4 million tons with the launch of the second phase of the project in 2031. Plans are also underway to secure 3.5 to 4 million tons of LNG annually by the early 2030s.
Additionally, Korea's interest in the $44 billion LNG project in Alaska has been revived. While the Ministry of Industry had previously deemed this investment "very risky," it has recently announced that it will consider this project as part of Korea's $200 billion investment package in the United States.
Korea's Minister of Industry, Kim Jang-kwan, stated at a press conference regarding the U.S. investment package: "The problem is that Korea's gas supply is heavily dependent on specific regions. Right now, the issue is just Hormuz, but if something happens in the Malacca Strait or the Taiwan Strait, we will be in serious trouble."
Crude oil imports also reflect a similar story, as U.S. oil was on the rise before the war, and recent disruptions in Hormuz have heightened concerns about dependence on the Middle East. From January to September this year, South Korea imported 732.99 million barrels of crude oil, of which 144.23 million barrels, or 19.7%, came from the United States, marking a 3.9% increase from last year.
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