South Korea Addresses LNG Supply Concerns After Iranian Attacks on Qatar Facilities

South Korean officials acknowledge growing uncertainty after Iranian strikes damaged Qatar's natural gas facilities, but say the country has sufficient alternative energy sources. Qatar announced it must suspend long-term LNG contracts for up to five years after losing 17% of export capacity.

South Korean government officials acknowledged Friday that Iranian strikes on Qatar’s energy infrastructure have created market uncertainty, though they emphasized the nation maintains adequate liquefied natural gas supplies through diverse sourcing options.

The state-owned QatarEnergy company announced it must invoke force majeure clauses on long-term supply agreements lasting up to five years for LNG deliveries to Italy, Belgium, South Korea, and China following the Iranian attacks that eliminated 17% of the country’s LNG export capabilities.

As the globe’s third-largest LNG purchaser behind China and Japan, South Korea relies on natural gas for electricity generation, industrial operations, and residential heating systems. Data from analytics company Kpler shows the country imported 47.77 million metric tons of LNG last year, with Qatar providing 7.16 million metric tons of that total.

Qatar ranks as South Korea’s third-most important LNG supplier, following Australia and Malaysia in volume.

“Given that the share of imports from Qatar is relatively low (at around 14% in 2026) and alternative supply sources are available, there are no issues regarding gas supply and demand,” South Korea’s Industry Ministry said in a statement, without elaborating on the potential alternative sources.

“However, as uncertainty has been growing, we plan to closely monitor supply, demand, and price trends and respond accordingly,” the ministry added.

The government-controlled Korea Gas Corp (KOGAS) reported Friday that its LNG stockpiles exceed required reserve levels. “KOGAS has sufficient capabilities to respond to supply and demand crises,” the company stated.

Officials plan to manage LNG supplies by boosting coal and nuclear power production while decreasing dependence on natural gas-powered electricity generation, according to Democratic Party representative Ahn Do-geol, who spoke earlier this week.

Natural gas-fired power plants generated 27% of South Korea’s electricity in 2025, with the remainder primarily coming from coal, nuclear, and renewable energy sources.

Ahn indicated that restrictions limiting coal power generation would be removed, while scheduled maintenance at six nuclear facilities would be expedited to maximize nuclear energy utilization.

LNG purchasers across Asia have been scrambling to secure replacement supplies since the U.S.-Israeli conflict with Iran blocked tanker passage through the Strait of Hormuz and interrupted Qatari deliveries.

Alex Siow, lead Asia gas analyst at ICIS analytics firm, suggested that Kogas should have little trouble replacing Qatari volumes through spot market purchases, as the company is less constrained by price considerations than other buyers.

Siow noted that South Korea had already begun increasing coal-fired electricity generation, while a new nuclear power facility scheduled to begin operations in the second half of the year will provide additional energy capacity.