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As the world’s second-largest LNG importer after Japan, Korea imports 85% of its LNG from the Middle East and Southeast Asia, and is therefore in urgent need to diversify its sources of supply.

Asian countries including Korea have imported LNG at crude oil-linked prices, but importing the much cheaper North American LNG would allow them to cut costs by 20 to 30%, even after factoring in transportation costs.

For this reason, the Korean government plans to increase the share of LNG imports from North America to 20% by 2020.

Besides helping to lower energy prices, North American LNG projects also offer the next big opportunity for Korean exporters, since a single LNG project generates orders for numerous related facilities such as on- and off-shore gas drilling facilities, LNG carriers, export-import terminals, and regasification plants.

Having enjoyed a virtual monopoly in the high value-added offshore LNG plant market in the last five years, Korean shipbuilders are now gearing up to absorb the imminent explosion of new orders from North America.

Likewise, Korean construction and engineering companies are devising strategies to diversify away from the Middle-Eastern market by winning liquefaction and regasification plant projects in North America.

Korea Eximbank’s Head of Export Credit Group Hong Young-pyo remarked, “Ever since we successfully co-financed the Sabine Pass LNG project with Korean commercial banks, sponsors have begun to seriously consider the ‘Korean Package’ ？ the option of involving Korean gas buyers, plant and shipbuilding companies, and Korea Eximbank in their projects. I hope this conference has further convinced North American sponsors about the merits of bringing on board Korean players.”