Demand falls, capacity remains: Korea's LNG terminal stranded asset warning
Quantifying the asset risk in Korea's LNG terminal expansion against falling demand projections.
Driven by global carbon-neutrality policy and the energy transition, demand for LNG (liquefied natural gas) is projected to drop sharply over the long term. Despite this, Korea continues to expand its LNG terminal capacity — already the world's third largest — with further additions still planned.
This report, motivated by the concern that this trend could lead to stranded asset risk, quantitatively analyses the utilisation decline and stranded asset scale across all currently operating and planned LNG terminals in Korea, under multiple demand scenarios.
Key Research Areas
- LNG demand outlook and terminal utilisation by carbon-neutral scenario
- Quantification of stranded asset scale for operating and planned terminals
- Asset risk evaluation of additional LNG terminal expansion
- Derivation of policy recommendations