SEOUL, Nov. 14 (Korea Bizwire) — South Korean business leaders said Tuesday they have asked Australia to reconsider its plans to restrict natural gas exports, concerned that the measure will affect access to the energy resource.
The Federation of Korean Industries (FKI) said it made the request at the Australia-Korea Business Council (AKBC) meeting held in Brisbane, Australia. AKBC was launched in 1979 as the sole civilian economic cooperation channel between the two countries.
Australia is expected to limit its exports of liquefied natural gas (LNG) starting next year to secure better domestic supply and contain rising local energy prices. South Korea is the world’s second-largest importer of LNG while Australia is the second-ranking exporter. For Australia, South Korea is the No. 3 importer of its LNG.
South Korea’s demand for LNG is likely to grow further under President Moon Jae-in’s energy policy to replace nuclear-generated power with environmentally-friendly sources. The top leaders of the two sides discussed enhanced cooperation on LNG during their summit talks in July.