Park Ki-young, Vice Minister of Industry, Holds 'Emergency Meeting on Energy Supply and Demand Trends'
[Sejong=Asia Economy Reporter Kwon Haeyoung] As concerns grow that China's power shortage and rising oil and natural gas prices will lead to a 'global energy crisis,' the government has launched an urgent review of energy supply and demand trends.
On the morning of the 30th, Park Kiyoung, the 2nd Vice Minister of the Ministry of Trade, Industry and Energy, held an 'Urgent Energy Supply and Demand Trend Review Meeting' at the Sejong Government Complex with executives from nine public enterprises in the oil, gas, mineral (raw materials), and electricity sectors. The meeting was convened to examine recent international oil and natural gas price increases and supply-demand instability in China and the UK, and their impact on domestic energy supply and demand.
During the meeting, the Ministry of Trade, Industry and Energy discussed recent power consumption restrictions in China, the oil shortage situation and outlook in the UK, and their effects on South Korea. China is experiencing a power shortage due to the suspension of coal imports from Australia amid diplomatic conflicts, leading to power supply restrictions in 21 out of 31 provinces. With the heating demand expected to rise ahead of the winter season, concerns over soaring oil and natural gas prices, which have been climbing since the beginning of the year, are intensifying.
Currently, international oil prices have risen from $43.21 per barrel of Brent crude last year to $70.51 in August this year, while natural gas prices based on JKM have increased from $3.83 per Mmbtu to $12.97 during the same period. Accordingly, the Ministry closely reviewed recent trends and forecasts of international oil and natural gas price increases, as well as domestic supply and demand trends and future response plans for oil, gas, minerals, and electricity.
Vice Minister Park Kiyoung urged, "Although supply and demand instability in China and the UK will have limited direct impact on our country's energy supply situation in the short term, thorough management is required as unexpected situations may arise locally if the situation prolongs." He emphasized, "Given the significant rise and increased volatility in recent international oil and natural gas prices, close monitoring of the international crude oil and gas markets is necessary," and added, "Please re-examine domestic and international supply chains for oil, gas, minerals, and electricity, and prepare thorough contingency plans for various scenarios."
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