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Korea likely to face LNG price volatility due to suspended supply from Qatar: Officials

Published: 25 Mar. 2026, 15:23

A plastic manufacturing facility in Ansan, Gyeonggi, is closed on March 24 due to supply disruption issues stemming from the Middle East crisis. [YONHAP]

Seoul may see increased volatility in liquefied natural gas (LNG) prices after Qatar reportedly declared force majeure on its long-term LNG supply contract with Korea, but the impact on supply will likely be limited, officials here said on Wednesday.

“We have already excluded [LNG]shipments from Qatar from our calculation for this year's [LNG supplies],” Yang Ghi-wuk, the deputy minister for trade, industry and resource security, said in a daily briefing on resources supplies amid the Middle East crisis, stressing that the country has sufficient LNG supplies to last throughout this year, even excluding shipments from Qatar.

Yang added that the government has been working to secure gas supplies through alternative routes as Qatar's announcement of force majeure was expected, though Seoul has yet to receive official confirmation from the Middle Eastern nation.

Despite sufficient supplies, the volatility of LNG prices could go up, putting upward pressure on domestic electricity rates, the ministry official noted, highlighting ongoing cooperation with climate and other related ministries to respond to the matter. The Ministry of Climate, Energy and Environment announced on Tuesday its plan to reduce LNG consumption by increasing coal and nuclear power generation.

Yang's remarks came hours after foreign news outlets, including Reuters and Al Jazeera, reported that QatarEnergy, a state-owned energy firm, declared force majeure on its long-term LNG supply contracts with Korea, China, Italy and Belgium due to damage caused by last week's missile attacks on its facilities amid an ongoing war led by the United States and Israel against Iran.

Yang said the government is also closely monitoring supply issues of other industrial and everyday products, such as engine oil, paints and garbage bags, noting that unexpected supply disruptions may arise in different sectors.

Regarding the possibility of oil imports from Russia, Seoul has confirmed with the U.S. government that purchases of Russian crude and petroleum products are allowed through the dollar, Chinese yuan, Russian ruble and United Arab Emirates dirham, the deputy minister said.

QatarEnergy's liquefied natural gas production facilities in Ras Laffan Industrial City, Qatar, are seen on March 2 amid the U.S.-Israeli conflict with Iran. [REUTERS/YONHAP]

The United States recently issued temporary waivers allowing the purchase of Russian crude already at sea as part of efforts to stabilize surging global oil prices sparked by the crisis.

Washington also confirmed there would be no secondary sanctions on such transactions, he explained, noting that the Seoul government is sharing the news with private industries.

Yang said, however, many uncertainties remain for imports of Russian crude, including issues surrounding oil quality and limited time to secure the products.

Imports of Russian naphtha seem more likely, he added.

The Seoul government has temporarily designated naphtha, widely used across petrochemical and other industries, as an economic security item due to a shortage of the material, which the country mainly imports from the Middle East.

It is also preparing to impose export restrictions on naphtha, with the aim of announcing such a measure within this week.

Yonhap