The South Korean government forecast natural gas (LNG) demand to grow by around 11% from 36.5 Mt in 2018 to over 40 Mt in 2031, due to a higher residential and industrial demand. The domestic residential and industrial consumption of LNG is expected to grow by 1.2%/year, from 20 Mt in 2018 to 23.4 Mt in 2031, while the gas demand from the power sector should increase by 3.5%, from 16.5 Mt in 2018 to 17 Mt in 2031.
South Korea had earlier forecast gas demand to fall from 36.5 Mt in 2014 to 34.6 Mt in 2029 (-5%) due to lower power generation demand, but the country now plans to shift away from coal and nuclear power.
The country will develop flexible LNG contracts and diversify its supplies. Approximately Won 5,800bn (US$5.5bn) will be invested by 2031 to improve the domestic gas supply infrastructure (in particular storage tanks and pipelines) and catch up with the rising demand.
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