Welcoming Remarks by H.E. Amb. Mr. Lee Taeho
Vice Minister of Foreign Affairs
On the occasion of the IGU Diplomatic Gas Forum
Seoul, March 28, 2019

Prof. Joe Kang, President of the International Gas Union,
Mr. Kim, Young-doo, Chairman of the 2021 World Gas Conference Organizing Committee,
Mr. Joo, Young-joon, Deputy Minister for Energy and Resources of the Ministry of Trade, Industry and Energy,

Ambassadors and other distinguished members of the diplomatic corps in Korea,

Excellencies, and Distinguished Guests,

I extend my warmest welcome to all of you to the IGU Diplomatic Gas Forum. I would also like to express my sincere appreciation to the IGU and the Organizing Committee for all the hard work you have undertaken to organize this meaningful event this morning.

In recent energy discussions in the international community, a number of issues have been addressed. Energy transition, energy efficiency, assured access to affordable energy, innovation, and more. But if I had to choose one key word that encompasses all these issues, that key word would be ‘energy sustainability.’ Under this theme of energy sustainability, people are engaged in lively discussions to gain a deeper understanding of what role natural gas may play in the energy mix, what may be the outlook for the natural gas market, what challenges lie ahead of us and how we should overcome them, and so on.

Currently accounting for 22% of the energy used worldwide, the demand for natural gas is also expected to continue to increase.  According to the International Energy Agency, natural gas is the fastest growing fossil fuel and is expected to surpass coal as the world’s second largest energy source following oil by 2030. Aside from the IEA’s scenarios, natural gas has important implications in many aspects indeed.

First, since the issue of climate change emerged, promoting increased use of low-carbon and clean energy sources has become the core of energy policies in most countries. And natural gas has come to the fore on account of its reduced emission of greenhouse gases. Korea, like many other countries, is implementing energy transition policies by promoting the increased use of renewable energy and natural gas while seeking to get less dependent on coal in power generation. 

Second, dramatic changes are taking place in the global natural gas market, having a huge impact on the global energy market and energy geopolitics. Following the North American ‘Shale Revolution’ in the early 2010s, the United States became in 2017, for the first time in 60 years, a net exporter of natural gas. Traditionally, Korea relied on the Middle East countries, Australia and Southeast Asian countries for LNG supply. However, there has recently been an upsurge in Korea’s imports of American LNG. And last year, the United States became Korea’s 3rd largest supplier of LNG after Qatar and Australia. There has also been a boost in American LNG imports in the EU market. Since the first shipment made in April 2016, only three years ago, it is surprising that American LNG constitutes a share of 12.6% of Europe’s total LNG imports this year, suggesting that the competition between the United States and Russia for Europe’s energy sector may become a reality.

Third, natural gas is an important energy source for Northeast Asian countries and cooperation among them in natural gas will bring huge benefits to them. Japan, China, and Korea account for more than half of the global LNG demand and therefore have a strong motivation to ensure a stable natural gas supply. The three countries are all in agreement on the need to enhance their cooperation to create favorable markets for Northeast Asian importers by seeking to resolve the issue of Asian premium and improving rigid regulations such as destination clauses and the ‘take or pay’ obligation, and more. The specific commitment to enhance their cooperation in LNG that the leaders of the three countries made on the occasion of the Trilateral Summit held in Tokyo last year is one instance of the efforts to that end.

Ladies and Gentlemen,

Nine years ago, at the time of the shale gas boom, the IEA posed a question: “Are we entering a Golden Age of Gas?” At the heart of this question lies the issue of whether natural gas is truly an affordable, reliable and clean energy source. In order to be able to say “yes” to that question, we need to make sufficient investments in natural gas and resolve such issues as methane emissions. Furthermore, these efforts should be made by all stakeholders. We need cooperation between countries and between governments and companies.

In this regard, the World Gas Conference, the world’s largest conference on LNG, does indeed have an important role to play in encouraging international cooperation.  Korea is honored to host the 28th Conference in 2021.  My Ministry, the Ministry of Foreign Affairs, will work together with the Organizing Committee and others during the period of preparation for this Conference, and continue to pursue a sustainable future of natural gas through bilateral and multilateral platforms in which the Ministry participates.

In concluding, I sincerely hope that today’s Forum will provide you all with meaningful insights for “a sustainable future powered by gas”, which is our common aspiration.

Thank you. 

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