The headquarters of Korea Gas Corp. (KOGAS) in Daegu / Courtesy of KOGAS

Korea's industry ministry on Thursday discussed ways to seek new import contracts for liquefied natural gas (LNG) with the state-run Korea Gas Corp. (KOGAS) to stabilize prices and meet growing demand.

The discussion came as some of the long-term import contracts clinched by KOGAS are set to expire within three years, while the demand for LNG is anticipated to remain high down the road, according to the Ministry of Trade, Industry and Energy.

"We plan to have forward contracts signed in a timely manner, considering the global market and supply stability, as such agreements have an impact on long-term supply and prices," a ministry official said.

KOGAS procures LNG through either forward contracts or spot contracts. While forward contracts lack flexibility, they offer relative stability in price and supply, even amid fluctuations in the international energy market.

KOGAS accounted for 78.8 percent of Korea's LNG imports in 2023. Of the volume, forward contracts accounted for 73.5 percent.

During the meeting, KOGAS and the industry ministry also discussed strategies to diversify the import portfolio to address supply uncertainties from specific regions. (Yonhap)