East Asian Supply Chain Feels Ripple Effects of Middle East Conflict: South Korea Hastens Reactivation of Six Nuclear Units Amid Gas Supply Concerns

Stock News
03/11

In response to ongoing Middle East hostilities, South Korea is accelerating the restart of nuclear reactors currently undergoing maintenance to bolster its energy security. Following an emergency meeting on Wednesday, the Ministry of Climate, Energy, and Environment announced plans to bring two reactors online this month and an additional four units by mid-May. The government also indicated it would consider flexible adjustments to coal-fired power plant operations if liquefied natural gas (LNG) deliveries are disrupted. Currently, coal power generation is restricted on weekdays as part of pollution reduction efforts. South Korea relies almost entirely on nuclear energy, natural gas, and coal for its electricity, and like other nations in the region, it depends heavily on imported fossil fuels. Last year, approximately 14% of the country's LNG imports came from Qatar, which recently halted production at the world's largest LNG facility following drone attacks by Iran. The ministry stated that while international crude oil and natural gas prices have surged due to the Middle East situation, the immediate impact on electricity bills has been limited due to a time lag in how fuel costs are reflected in the power market. However, it warned that prolonged high oil prices or disruptions to LNG imports would inevitably affect the electricity sector. As a major LNG importer, South Korean authorities convened a meeting with key state-owned enterprises, including Korea Electric Power Corporation (KEPCO), nuclear operator Korea Hydro & Nuclear Power (KHNP), and Korea Gas Corporation (KOGAS). According to the statement, 15 nuclear reactors are currently operational in South Korea. The government aims to restart the Shin Wolsong Unit 1 and Kori Unit 2 reactors this month, followed by the Hanbit Unit 6, Hanul Unit 3, Wolsong Unit 2, and Wolsong Unit 3 reactors by mid-May.

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