Andeok Geun: "Possibility of Expanding US Energy Resource Imports... From Price and Security Perspectives"

"Blue Whale, First Drilling Results to be Released in the First Half of Next Year"

Anduk Geun, Minister of Trade, Industry and Energy, expressed his intention to expand imports of U.S. energy resources. Minister Ahn appears to have judged that U.S. energy resources are advantageous in terms of price and economic security compared to Middle Eastern energy resources.

Minister Andeok Geun of the Ministry of Trade, Industry and Energy is speaking at a semiconductor industry meeting held on the 20th at Lotte Hotel in Jung-gu, Seoul, in preparation for the new U.S. administration. Key company executives attending the meeting included Kim Dongseop, President of SK Hynix; Ji Hyunki, Vice President of Samsung Electronics; Lee Kyungil, CEO of PSK; and Kim Jeonghee, Vice Chairman of the Semiconductor Industry Association. Photo by Jo Yongjun

In an interview with Yonhap News Agency held on the 1st at his office in the Government Seoul Office Complex, Minister Ahn responded to the question, "Has the need to manage the trade balance with the U.S. increased with the return of former U.S. President Donald Trump?" by saying, "In terms of price, U.S. energy resources are much more advantageous than Middle Eastern ones, so I think there is sufficient room for expansion of imports by both public and private sectors," adding, "There is a need to expand imports from the U.S., and our companies will utilize this constructively from a business strategy perspective, while the Ministry of Trade, Industry and Energy will do so from a policy perspective."

Minister Ahn mentioned crude oil and liquefied natural gas (LNG) as items for import expansion. He said, "The oil and gas we really need are reasonably priced, so there is room to secure them under favorable conditions," and added, "Given the current excessive dependence on the Middle East and the frequent conflicts there, there is a policy need for diversification from an energy security standpoint."

Minister Ahn also expressed his intention to import advanced materials to diversify the industrial supply chain. He stated, "We intend to balance the trade deficit by diversifying the industrial supply chain with the U.S. in many areas such as advanced materials," and added, "This could be significantly utilized to upgrade Korea’s industrial policy to the next level."

He also mentioned the possibility of supporting logistics costs to promote the expansion of imports of U.S. crude oil and gas. Regarding logistics cost support for importing crude oil and gas from the distant U.S., Minister Ahn said, "If there is room for such support, I think it should be considered."

Meanwhile, regarding the 'Daewanggorae' gas field development project, which will be in full swing from mid-this month, he predicted that the first exploration drilling results will be available in the first half of next year. Minister Ahn said, "Drilling takes two months, and even after finishing the drilling work, samples must be taken and analyzed," adding, "It takes quite a long time to complete the analysis, but since public interest is high, we will inform the public of the progress as soon as possible during the process."

Furthermore, he said, "Once the drilling work is completed, we will lift the current production rights and establish new production rights to proceed with attracting overseas investment," and added, "The profits generated from the Daewanggorae gas field will belong entirely to the people and will be used for projects necessary for the nation."