South Korean officials warned of increased LNG price volatility after Qatar reportedly declared force majeure on its long-term supply contract with the country, though supply impacts will be limited. Deputy Minister Yang Ghi-wuk said shipments from Qatar have already been excluded from this year's supply calculations, ensuring sufficiency. A Cheong Wa Dae official confirmed stable supplies from non-Middle Eastern routes.
SEOUL, March 25 (Yonhap) -- South Korean officials said Wednesday the country may face heightened liquefied natural gas (LNG) price volatility after Qatar reportedly declared force majeure on its long-term supply contract with Seoul, though supply disruptions will be limited. “We have already excluded (LNG) shipments from Qatar from our calculation for this year's (LNG supplies),” Yang Ghi-wuk, deputy minister for trade, industry and resource security, said during a daily briefing on resource supplies amid the Mideast crisis. He stressed that the nation has sufficient LNG to last through the year without Qatar shipments. The government anticipated the move and is securing alternatives, though no official confirmation has been received from Qatar. A Cheong Wa Dae official later confirmed “stable supply of LNG,” noting that routes outside the Middle East “remain stable.” “Even if LNG supply from Qatar is suspended, we can ensure stable supply until the year's end, as imports from non-Middle Eastern regions are proceeding smoothly,” the official said. Officials noted potential upward pressure on electricity rates from price swings and are coordinating with the climate ministry, which announced Tuesday plans to cut LNG use by boosting coal and nuclear generation. Yang's comments followed reports by Reuters and Al Jazeera that QatarEnergy invoked force majeure on contracts with South Korea, China, Italy, and Belgium due to facility damage from last week's missile attacks in the U.S.- and Israel-led war against Iran. The government is monitoring other goods like engine oil, paints, and garbage bags. On Russian oil, Seoul confirmed with Washington that imports are allowed via U.S. dollar, Chinese yuan, Russian ruble, and UAE dirham, with temporary U.S. waivers for crude at sea and no secondary sanctions. Uncertainties persist on quality and timing, making Russian naphtha imports more feasible. Naphtha, mainly from the Middle East, has been designated an economic security item, with export curbs planned this week.
