South Korea Plans Boost in U.S. LNG Imports Amid Energy Shift

South Korea Plans Boost in U.S. LNG Imports Amid Energy Shift

Asia Manufacturing Review Team | Thursday, 17 July 2025

 South Korea Plans Boost in U.S. LNG Imports Amid Energy Shift
  • Korea Gas Corp. is negotiating a deal to boost U.S. LNG imports.
  • The move aligns with U.S. efforts to reduce its trade deficit.
  • Talks also involve agricultural access, defense costs, and joint manufacturing.

The South Korean government is exploring options to possibly double its yearly imports of U.S. liquefied natural gas (LNG). This action is taken before the August 1 trade negotiation deadline established by the U.S. government, which aims to reduce the U.S. trade deficit with South Korea.

U.S. President Donald Trump is pushing for greater involvement in U.S. manufacturing investment funds, an expansion of defense cost-sharing, and the reduction of non-tariff barriers on agricultural products such as rice and beef.

According to the Ministry of Trade, Industry and Energy and its associated agencies, Korea Gas Corp. is seriously evaluating a new import agreement to increase U.S. LNG imports above current levels. An official from the government declared, “The gas corporation’s board of directors approved the LNG import contract in late April, and negotiations are underway with the goal of finalizing the contract by year-end.”

Although the exact volumes of individual LNG contracts from the gas corporation are usually not made public, industry specialists predict that this mid- to long-term contract volume might vary between 1 million and 3 million tons per year.

A source from the energy sector revealed, “In the past, the gas corporation used to purchase LNG in large quantities of 4 to 5 million tons, but recently, there’s a trend to split contract volumes for supply stability.” A gas corporation official noted, “The volume is still flexible as negotiations are ongoing.”

If the import agreement between the Gas Corporation and U.S. LNG firms is finalized, the gas corporation's portion of U.S. LNG imports is expected to nearly double. As per the Korea LNG Industry Association, out of the total 36.08 million tons of LNG imported by the gas corporation last year, U.S. imports represented merely 10.7% (3.86 million tons). The ultimate import quantity will be established by incorporating this new volume with the current mid-term contract totals.

Raising the share of U.S. LNG is anticipated to greatly diminish the U.S. trade deficit. Yeo Han-koo, the leader of the Trade Negotiation Headquarters at the Ministry of Trade, Industry and Energy, recently mentioned, “The U.S. has a strong determination to reduce its trade deficit with all countries, including South Korea.”

Also Read: China, Australia Deepen Green Energy Ties on Albanese Visit

The U.S. is highly focused on enhancing its LNG industry's competitiveness, which encompasses LNG exports and the Alaska LNG project. A senior representative from the Ministry of Trade, Industry and Energy announced on June 27, “Among various U.S. energy projects, President Donald Trump personally mentions and prioritizes only Alaska.”

In reply to these U.S. requests, the administration is suggesting collaborative efforts in advanced manufacturing. The goal is for South Korea and the U.S. to collaborate and form a partnership to renew U.S. manufacturing. The strategy involves enhancing collaboration in sectors where South Korea excels, including shipbuilding, semiconductors, and batteries, to establish a mutually beneficial relationship.

At present, it is understood that the U.S. is requesting the removal of import limits on beef older than 30 months and the relaxation of non-tariff obstacles associated with the import of horticultural crops such as apples and berries, and genetically modified organisms.


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