Development history of South Korea’s liquefied natural gas pipeline

Since 1962, South Korea has implemented four five-year economic development plans, so that the national economy embarked on the “take-off” road, in 1978, South Korea’s per capita GDP exceeded 1,000 U.S. dollars. However, after two oil crises, as an energy-poor country, the Korean government began to consider the diversification of energy use, so natural gas entered the Korean government’s vision, and went through three stages of development liquefied natural gas pipeline in South Korea.
1, The initial stage (1981-1990)
In the extreme shortage of domestic energy, the Korean government’s economic authorities began planning LNG imports. In 1976, Korea Electric Power Company was commissioned to send a delegation to Japan and Indonesia, but the cost was too high and the technical conditions were not available. In 1978, Korea set up the Ministry of Power and visited Japan again. In 1979, the Ministry of Power ordered the State Power Corporation of Korea and Daewoo Corporation to conduct research on the use of power industry and the introduction of natural gas. In 1981, the Korean government put forward the LNG development program, and made plans on the import volume, consumption structure, port and LPG pipeline infrastructure, power generation facilities, etc. from 1985 to 1991. According to this plan, LNG150 million tons were imported in 1985, and 3 million tons in 1987 and 1991. In 1985 and 1987, electricity consumption accounted for 93% and 85% respectively, and dropped to 64% in 1991. Civil gas gradually increased from 7% to 20%, industrial gas accounted for 6% in 1987 and 16% in 1991. The actual implementation result lagged behind the above plan.
In August 1983, the Korea Natural Gas Commune was established; in October 1986, the first LNG from Indonesia was imported; in November 1986, gas was supplied to power stations; in February 1987, gas was supplied to Hancheng District, mainly for urban residents; and in April 1987, the liquefied natural gas transfer station and distribution equipment in Pyeangtaek were completed and put into operation. However, LNG in South Korea did not develop rapidly during this period. By 1991, LNG imports were only 2.68 million tons, mainly due to the slow growth of urban gas consumption, such as 5% of consumption in 1987 (originally planned 15%).
2, Rapid development stage (1990-2000)

In April 1990, South Korea promulgated a general plan for the construction of a liquefied natural gas pipeline distribution system: gas supply to cities in central Korea began in July 1993; the first phase of the LNG transfer station in Pyeangtaek was completed in November 1995; and gas supply to cities in Yeongnam and Honam regions of South Korea began in November 1995; In October 1997, Incheon LNG transfer station and distribution equipment were completed and put into operation; in October 1999, natural gas was supplied to the western part of Korea; and in December 1999, an annular sky was built in Kangwon and Hancheng districts. Main line of gas pipeline. With the implementation of these measures, the actual consumption of LNG began to outweigh the planned volume. In 1999, natural gas accounted for 9% of Korea’s primary energy consumption, becoming the world’s second largest LNG importer.

082448w5pfw4p4wtz55n8z - Development history of South Korea's liquefied natural gas pipeline

Accordingly, there are some policies and regulations, such as the implementation of the Atmospheric Environment Law in 1990, which has made a great progress in environmental protection. Specific measures taken by the government include limiting sulphur emissions at power plants in Seoul and banning the use of petroleum fuels in designated “clean energy zones”. Environmental measures restrict the use of coal and oil, or mandatory environmental requirements raise the cost of using coal and oil, increase the market competitiveness of low-sulfur and low-pollution natural gas, thus promoting the development of the Korean natural gas industry.
In the industrial sector, natural gas will compete with petroleum products including LPG. Considering the characteristics of pipeline operation and cost composition, the types and prices of services provided by natural gas companies will affect the utilization and quantity of natural gas.
For residents, the vast majority of households in natural gas consumption areas use central heating systems, as well as natural gas for cooking and heating. Environmental laws will have little impact on natural gas consumption, and this trend will not change in the future. In the commercial sector, however, since many large cities require clean energy or diesel to be used for boilers above 0.2 tons per hour after 2000, the consumption of natural gas will depend on the price of natural gas.
South Korea has further promoted the development of the natural gas industry through the use of technologies such as combined cycle power generation, natural gas refrigeration and compressed natural gas power vehicles. After importing natural gas in 1986, Korea’s annual consumption growth rate has remained above 20%. By the end of 2002, natural gas consumption accounted for 11.3% of energy consumption, and then the growth rate of natural gas demand slowed down.
First, natural gas should find its own market in areas such as combined cycle power generation, natural gas refrigeration and compressed natural gas power vehicles. South Korea’s natural gas company has implemented incentives and offered a more competitive price base than diesel to further promote compressed natural gas (CNG) powered vehicles. South Korea has built 80 new filling stations, with 4,056 existing compressed natural gas powered vehicles in major cities, and is expected to increase to 20,000 in 2007. The growing popularity of compressed natural gas powered vehicles will help reduce air pollution in large cities. According to the Transportation Survey Association, air pollution caused by automobiles is increasing in Seoul, with large diesel-powered vehicles accounting for only 3% of registered vehicles, but 30% of the pollution. Therefore, the use of compressed natural gas vehicle instead of diesel powered vehicle is the most effective short-term environmental policy. Meanwhile, South Korea’s natural gas company is trying to supply more efficient fuels for natural gas vehicles, such as liquefied compressed natural gas (LCNG) and LNG.
At the end of 1999, 32 city Gas Co (19 of them used LNG) organized the City Gas Association. The largest Samchuli and Seoul (Seoul) companies accounted for 27.2% and 23.2% respectively, followed by Dehan and Kukdong, which accounted for 14.7% and 14.4% respectively. The proportion of liquefied natural gas (LNG) in urban gas is 84%, and the remaining 16% is LPG in regasification. The operation of urban Gas Co embodies the principle of marketization more.
3, Steady development stage (2000-2003 years)
In 1999, the government announced a reform plan for the natural gas industry, dividing the business of natural gas companies into two parts in 2001, with three companies responsible for import and wholesale sales; in 2002, two of them were sold to the private sector; and in 2003, an open competition mechanism was established in the wholesale market to force the opening of the natural gas pipeline network and to make it real in the retail market. Competition mechanism.
The competition mechanism has been introduced into the Korean natural gas industry. As a first step, the country is gradually opening up the import business of liquefied natural gas. South Korea’s POSCO Iron and Steel Corporation has been approved to import liquefied natural gas (LNG) to establish a LNG receiving station for automatic power generation. Once large consumers are free to import natural gas, KCNG needs to study other business areas, such as power generation, in addition to maintaining a balanced supply system. Since large users can import natural gas freely according to their own needs, if large users are far away from receiving stations, they will need to build natural gas transportation facilities. This requires the third party to connect with the South Korean Natural Gas Corporation pipeline, the feasibility of this work and implementation methods are under consideration. If the problem of third-party connections to pipelines can be solved, the natural gas industry must be separated from the retail business, and the overall outlook for South Korea’s natural gas will change. If a third party joins in the competition for gas retailers, natural gas consumption will be much greater than expected.
Although a offshore gas field in South Korea started producing a small amount of natural gas in early 2004, making it a small gas producer, it is still unable to meet the country’s growing demand for natural gas (production accounts for only about 2% of domestic demand), whether in the past or in the future, South Korea has mainly imported LNG. Form realization. At present, most of the LNGs in Korea come from Qatar, Indonesia, Malaysia and Oman, and a few from Brunei and Australia. Of course, the development of nuclear power has also put pressure on the natural gas market. South Korea plans to reduce its dependence on imported natural gas by building 12 new nuclear power plants. The Ministry of Trade, Industry and Energy plans to reduce LNG import demand to 34 million tons by 2020.

Source: China LPG Pipes Manufacturer – Yaang Pipe Industry (

(Yaang Pipe Industry is a leading manufacturer and supplier of nickel alloy and stainless steel products, including Super Duplex Stainless Steel Flanges, Stainless Steel Flanges, Stainless Steel Pipe Fittings, Stainless Steel Pipe. Yaang products are widely used in Shipbuilding, Nuclear power, Marine engineering, Petroleum, Chemical, Mining, Sewage treatment, Natural gas and Pressure vessels and other industries.)

If you want to have more information about the article or you want to share your opinion with us, contact us at

Please notice that you might be interested in the other technical articles we’ve published:



Related News

  • * 暂无相关文章
العربيةБългарски简体中文繁體中文DanskNederlandsEnglishFrançaisDeutschBahasa IndonesiaItaliano日本語한국어LatinPortuguêsРусскийEspañolதமிழ்ไทยTürkçe