As one of South Korea’s leading energy company, Korea Gas Corporation (KOGAS) plays a pivotal role in the country’s energy transition. President and Chief Executive Officer of KOGAS Choi Yeon-Hye shares the company’s strategies for leveraging LNG, advancing hydrogen projects, and enhancing international partnerships to navigate the evolving energy landscape and support a sustainable future.
South Korea is a major global importer of LNG, given LNG’s critical role in maintaining the nation’s energy security, how does KOGAS ensure continuous gas supply, demand stability, and price competitiveness?
KOGAS, as a leading energy company in South Korea, is committed to promoting quality of life and public welfare. We achieve this through the stable and economic supply of natural gas. To meet our goals, KOGAS is making great efforts to import liquefied natural gas (LNG) from diversified and reliable sources worldwide. We’re securing more flexible terms in LNG contracts.
As South Korea’s only fully-integrated natural gas provider, KOGAS takes an active role in overseas resource development. This enhances energy security while expanding LNG trading and optimising transactions.
We also pursue proactive management. These include conducting energy-saving campaigns during high-demand winter seasons and expanding energy efficiency programmes for the public.
Given South Korea’s revised target to achieve 30 percent new and renewable power generation by 2036 instead of 2030, how do hydrogen and LNG fit into South Korea’s energy transition strategy?
The South Korean government has set a solid goal to boost renewable energy and phase down coal-fired power generation. This is reflected in the revised Nationally Determined Contributions. We believe LNG will play a pivotal role in the energy transition. It is the most reliable energy source that supports a stable and safe power supply while complementing the intermittency of renewable energy.
KOGAS will strive to contribute to national greenhouse gas reduction. We will do this by implementing energy savings and other eco-friendly business developments.
South Korea is set to become the first country in the world to establish a bidding market for clean hydrogen. This Clean Hydrogen Portfolio Standard (CHPS) aims to supply 6,500 GWh of clean hydrogen-generated electricity annually. KOGAS is planning to construct a hydrogen pipeline network. This will transport clean hydrogen to LNG co-firing power plants for carbon emission reduction.
How is KOGAS leveraging its international partnerships, such as your collaboration with the Energy Market Authority (EMA) in LNG procurement and supply chain management, to enhance its capabilities and contribute to its strategic objectives?
As a major global LNG buyer, KOGAS has maintained long-term partnerships with many overseas suppliers. These close networks with international energy companies are expanding beyond LNG procurement. They now include LNG developments through 23 overseas projects in 12 countries.
We believe these business networks provide us with more opportunities to develop and participate in new projects. They serve as a cornerstone for further international cooperation in the future.
The partnership established through the recent memorandum of understanding with EMA will create strong ties in energy cooperation between our two countries. It will help address the volatility and uncertainty in the energy market.
Looking ahead, how do you see KOGAS role evolving in driving the energy transition, and how it is aligned with the SIEW 2024 theme “A Connected and Sustainable Energy World”?
Natural gas is increasingly recognised for its role as a bridge energy to carbon neutrality. Given the intermittency of renewable energy and its affordability, natural gas can facilitate a practical energy transition.
To achieve the transition to cleaner energy, KOGAS is promoting LNG bunkering as a fuel to meet the International Maritime Organization (IMO)’s maritime environmental regulations. We are also re-utilising the cold energy generated in the LNG regasification process and cultivating low carbon LNG business in developing countries.
KOGAS is also fully committed to technology innovations. These include the development of low carbon LNG, e-methane, and sustainable energy sources.
Choi Yeon-Hye is the President and CEO of Korea Gas Corporation (KOGAS), a position she has held since December 2022. With an extensive career in energy and transportation, she also serves as Chairman of the Korea Gas Union and Vice Chairman of the Energy & Mineral Resources Development Association. She is also a member of the Hydrogen council.
Ms Choi was previously a member of the 20th National Assembly, where she served on committees focused on energy, ICT, and trade. She has also served as President and CEO of Korea Railroad (KORAIL).