South Korea Shifts to Coal and Nuclear Power
The government is adjusting its energy mix this winter following supply disruptions at major Qatari natural gas facilities.
Updated on Oct. 16, 2026 in Oil and Gas
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South Korea plans to reduce its reliance on liquefied natural gas this winter by increasing its use of coal and nuclear power. This strategic policy shift follows significant missile damage at QatarEnergy's Ras Laffan production facilities, which disrupted global energy supply chains.
Why it matters
The government aims to secure stable energy supplies while preventing sharp electricity price hikes and further financial strain on KEPCO. These measures are necessary because reduced imports from Qatar, which previously accounted for 14% of Korean liquefied natural gas shipments, necessitate lower domestic demand.
The K-GX plan targets 1,000 trillion won in funding over 2026-2035 to support the transition, alongside a goal for 100 gigawatts of renewable capacity by 2030. Global markets have already reacted, with the JKM benchmark assessed at $25.908 per million British thermal units on Sept. 2.
The players
QatarEnergy
This state-owned petroleum company operates the massive Ras Laffan facilities that experienced recent missile damage.
KEPCO
The Korea Electric Power Corporation is the state-run entity responsible for electricity supply and distribution in South Korea.
The details
The government released the K-GX plan on Oct. 7 to manage the energy shortage by shifting electricity generation away from liquefied natural gas. Repairs at the damaged Qatari production trains are expected to take up to five years, impacting energy markets that saw prices peak at $28.315 in December 2022.
Timeline
Dec 30, 2022: JKM benchmark reached a historical peak of $28.315.
End of 2025: Middle East share of imports fell below 20%.
Sept 2, 2026: JKM benchmark was assessed at $25.908 per unit.
Oct 7, 2026: The government released the K-GX energy plan.
Oct 15, 2026: The minister described the winter energy policy.
Market Landscape
This policy shift marks a significant move to mitigate the impact of the JKM benchmark volatility on national infrastructure and consumer costs. By diversifying away from liquefied natural gas after supply shocks, the industry is repositioning itself to insulate domestic utility providers from global price surges.
The government's shift to coal and nuclear power is intended to stabilize energy prices and protect households from sudden cost increases. Consumers should anticipate a national focus on these power sources as the country seeks to avoid the financial strain that would otherwise impact the utility provider.
The takeaway
Energy security strategies are increasingly reliant on diversifying power mixes to buffer against sudden international supply chain shocks. Readers should monitor national energy policies, as shifting baseload power sources can influence long-term electricity pricing and grid reliability.
Further reading
For broader trends in the global energy market, explore the latest Oil and Gas developments.
Source note: This article includes information reported by TokenPost.
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