The Ministry of Climate, Energy and Environment said on the 2nd that it held a meeting chaired by Second Vice Minister Lee Ho-hyeon with related agencies to review the domestic energy situation after large-scale Iranian airstrikes by the United States and Israel. Power public corporations including the Korea Power Exchange, KEPCO, KHNP, and the five generation companies, as well as the Korea Energy Economics Institute (KEEI), attended the meeting.
The ministry said it has determined that, so far, the situation in the Middle East has had no impact on Korea's electricity supply and demand. Considering that increases in oil prices are typically reflected in liquefied natural gas (LNG) prices with a lag of three to six months, it projected that the short-term impact on the power market would be limited.
It was also determined that bituminous coal purchased by power generation public corporations and directly imported LNG are not affected, as none of these volumes are imported from the Middle East. Major projects in the Middle East being pursued by KEPCO and its generation subsidiaries have also seen no direct impact so far.
However, the ministry said it will strengthen monitoring of the Middle East and maintain an emergency response system together with power public corporations to prepare for the possibility that the situation could be prolonged or the Strait of Hormuz could be blocked, causing a surge in oil prices and disruptions in gas imports.
Vice Minister Lee Ho-hyeon said, "In an uncertain situation, the Ministry and power public corporations must join forces to respond in order to minimize the impact on the energy industry and ensure a stable power supply."