Korea Gas Corporation (036460.KS), the country's state-run gas utility, has already secured more than 1 million tons per year of non-Middle Eastern LNG equity volumes under its direct control, as Qatar — the world's second-largest LNG exporter — has raised the possibility of invoking force majeure amid escalating tensions in the Middle East.
According to KOGAS on the 26th, the company's equity volumes obtained through overseas investment projects stood at approximately 1.06 million tons per year as of last year. Equity volumes refer to LNG quantities over which KOGAS holds ownership and operational rights through direct participation in resource development. These volumes can be entirely imported domestically or resold to third countries depending on Korea's LNG supply-demand conditions.
KOGAS's annual equity volumes consist of 700,000 tons from Canada and 360,000 tons from Australia. "Australia and Canada are regions unaffected by Middle Eastern geopolitical risks, making them optimal alternatives that can be strategically utilized during a Middle East crisis," a KOGAS official said. "Recently, KOGAS decided to import all 11 LNG cargo shipments of equity volumes scheduled for production this year from its Australian and Canadian projects to respond to a potential blockade of the Strait of Hormuz." One LNG cargo is equivalent to one day of domestic summer consumption.
The government has assessed that KOGAS's efforts to expand equity volumes and diversify export sources played a role in reducing energy risks during the current Middle East crisis. As recently as 2024, Middle Eastern LNG accounted for one-third of Korea's total imports, but that share fell to less than 20% as of the end of last year. Qatari volumes passing through the Strait of Hormuz account for only 14%. "Even if Qatari LNG imports are suspended, non-Middle Eastern LNG volumes are being imported smoothly, enabling stable supply through the end of the year," a government official stressed.
KOGAS plans to increase its LNG equity volumes to 3.88 million tons by 2031. If projects such as the Mozambique Coral North floating LNG (FLNG) production facility, the Mozambique Rovuma project, and LNG Canada Phase 2 materialize, equity volumes could more than triple from current levels.
"What matters now is not simply securing large quantities of LNG, but how much volume we can bring in stably even during a crisis," KOGAS CEO Choi Yeon-hye said. "KOGAS will continue to strive for agile responses and strategic supply stabilization."
