NATURAL GAS MIXED WITH LPG

[Anchor Lead]

Russia has closed the major gas pipe supplying natural gas to Europe. Concerns are rising over global gas supply disruptions ahead of the cold season. Korea has decided to supply natural gas mixed with LPG to prevent gas shortages.

[Pkg]

Last year Korea imported 46 million tons of natural gas. It's the world's third largest importer of gas. The imported natural gas is used for household use and power generation. Prices of LPG in South Korea, Japan and other Northeast Asian countries have more than doubled since the start of 2022 as a result of Russia's invasion of Ukraine. The global competition for securing gas is intensifying as Russia has recently shut down the pipeline supplying gas to Europe. Australia, the largest supplier of natural gas to Korea in the first half of 2022, is considering restricting gas exports to secure enough supply for domestic use. Finding a source for Korea has become an emergency. The government has decided to supply natural gas mixed with LPG from October. LPG is high-calorific and cheaper. It's also safe to use and doesn't pose a threat to the environment even when mixed with natural gas. The practice was conducted twice in the past decade when gas supply was unstable. This time regulations will be revised to permit higher amounts of LPG to be mixed with natural gas when supply runs low. The government says natural gas supply is still steady in the nation, but some say demand should be adjusted.

[Soundbite] Park Jin-ho(Korea Energy Economics Inst.) : "Europe is trying to curb gas demand and stockpile on gas ahead of winter. Korea should also devise policies to reduce the use of gas."

The government says it will closely monitor the situation and order private businesses that directly import gas to adjust their imports if necessary.