South Korea fuels LNG ties to stabilise energy supply

Some partnerships forged were with Singapore, and Japan.

South Korea is working on strengthening the country’s liquefied natural gas (LNG) supply chain collaboration with other countries to address volatility risks in the global energy market with the aim to stabilise the domestic natural gas supply.

The country recently signed a memorandum of understanding with Singapore for an LNG swap agreement to leverage their complementary seasonal demand patterns and enhance pricing power through joint purchases. 

Korea signed another partnership with Japan, with both their governments, Korea Gas Corporation, and JERA working on monitoring the global supply chain, strengthening information exchange, making joint purchases, and rolling out an LNG swap.

The country is also participating in the Early Alert Mechanism pilot project along with major LNG producers like Australia, Canada, and the U.S. and importers like the EU, and Japan.

This project  is a natural gas supply chain crisis sharing system for information spreading and joint response against accidents that may potentially damage natural gas field facilities and disrupt the natural gas supply chain.