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Attack on Qatar LNG facility sparks Korean fears of higher energy prices this summer

Published: 20 Mar. 2026, 19:58

Ras Laffan Industrial City, Qatar’s main liquefied natural gas production hub, is seen on Feb. 6, 2017. [AFP/YONHAP]

An energy crisis triggered by tensions in the Middle East is spreading from oil to natural gas, raising concerns in Korea about higher electricity and gas prices this summer.

Following an attack on a major liquefied natural gas (LNG) facility in Qatar, the government assured supply disruptions are unlikely due to diversified import sources, but warned that rising costs could put pressure on utility rates.

“Qatar accounts for about 14 percent of Korea’s LNG imports this year, which is not high, and alternative suppliers are available,” Korea Gas Corp. (Kogas) said Friday. “We will ensure a stable LNG supply through timely procurement and diversification of import sources.”

The Blue House ensured there were no issues with the domestic gas supply.

A day earlier, QatarEnergy warned it could declare force majeure for up to five years on long-term LNG supply contracts, including those with Korea, following an attack on its facilities.

Despite the warning, the government emphasized that Korea’s LNG imports are less dependent on the Middle East than its crude oil imports.

According to data from the Korea International Trade Association, Australia accounted for 31.4 percent of Korea’s LNG imports last year, followed by Malaysia at 16.1 percent and Qatar at 14.9 percent.

Officials noted that Korea maintains gas reserves exceeding its mandatory stockpile requirement of about nine days, ensuring short-term supply stability.

The bigger concern, however, is rising prices.

Qatar accounts for roughly 20 percent of global LNG exports, and prolonged disruptions could intensify competition for alternative supplies, driving prices higher.

LNG is one of Korea’s three main fuel sources and a key source for residential heating, meaning price increases could affect both electricity and gas bills.

QatarEnergy facilities at Ras Laffan Industrial City are seen on March 2, 2026. [AFP/YONHAP]

Upward pressure is already building as LNG prices are linked to global oil prices. A recent surge in Dubai crude is expected to feed into Korea’s wholesale electricity price, known as the system marginal price, with a lag of four to five months.

This could lead to higher electricity costs during peak summer demand in July and August.

“The risk of price increases has grown due to both rising oil prices and competition to replace Qatari supply,” Kim Jin-soo, a professor in the Department of Earth Resources and Environmental Engineering at Hanyang University, said. “Pressure on electricity rates will intensify not only in summer, when demand is high, but also in winter if the disruption continues.”

“Securing additional volumes under existing long-term contracts and adjusting power generation mix in advance will be key to managing supply risks,” Kim added.

Meanwhile, the government is considering measures to curb domestic supply shortages, including restricting petroleum product exports.

“The current oil supply situation is an emergency,” Moon Shin-hak, the vice minister of the Ministry of Trade, Industry and Resources, said in an interview on CBS Radio’s “Park Sung-tae’s News Show.” “We must consider scenarios in which refinery exports do not reach the usual 50 percent and prepare contingency plans.”

“The government may also take measures such as supply adjustment orders and export restrictions if necessary,” Moon continued.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NAM SOO-HYOUN [[email protected]]