Gas
South Korea shifts back to coal amid winter gas squeeze
South Korea plans to increase coal and nuclear power usage this winter to counter liquefied natural gas supply disruptions caused by conflict in the Middle East.
Key points
- South Korea will increase coal and nuclear generation to reduce winter gas consumption.
- Middle East conflict has restricted liquefied natural gas shipments from the Persian Gulf.
- The policy adjustment aims to protect state utility Kepco from soaring fuel costs under regulated tariffs.
What happened
South Korea intends to rely more heavily on coal and nuclear energy during the upcoming winter months, according to Climate, Energy and Environment Minister Kim Sungwhan. Energy Connects reported that disruptions to liquefied natural gas supplies, driven by the conflict in the Middle East, have forced the government to curb gas consumption as heating demand reaches its peak.
According to the International Gas Union data cited in the report, South Korea accounted for 11 percent of global LNG shipments last year. The ongoing US-Iran war has heavily restricted cargo flows from the Persian Gulf, sending Asian LNG prices to their highest levels in nearly four years.
Why it matters
The short-term policy shift exposes the difficulties nations face in reconciling long-term climate targets with immediate energy security needs. While coal prices have also risen, the fuel remains more cost-competitive than constrained LNG supplies.
The adjustment also seeks to shield the state-run Korea Electric Power Corp. from severe financial strain. The utility purchases fuel at market rates but supplies electricity to consumers under government-regulated tariffs, a dynamic that accumulated roughly 30 trillion won ($22 billion) in losses during previous energy crises.
What comes next
Minister Kim stated that increasing coal and nuclear utilization is a short-term measure and does not alter the country's long-term objective to reduce fossil fuel dependence. South Korea plans to continue expanding renewables, while exploring green hydrogen and carbon capture technologies to mitigate emissions from gas-fired generation over time.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
25.8% of electricity in South Korea came from gas in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
