PETRONAS Expands LNG Supply Strategy in South Korea
Energy suppliers are adopting flexible logistics and lower-emissions options to meet evolving regional demand.
Updated on Oct. 22, 2026 in Oil and Gas
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PETRONAS is expanding its liquefied natural gas (LNG) supply strategy to South Korea, aiming to bolster energy security and support decarbonization efforts. The company secured 3.3 million tonnes per year of new long-term global contracts in the first half of 2026 to meet shifting demand.
Why it matters
As South Korea transitions away from traditional fossil fuels, suppliers are shifting toward more flexible, customized supply solutions to address energy security and decarbonization goals. This strategy reflects a broader industry move to adapt infrastructure and logistics to support evolving energy portfolios.
PETRONAS sold 20.29 million tonnes of LNG in the first half of 2026, supported by 282 total cargoes. This follows a 2025 performance where the firm sold 36.6 million tonnes of LNG globally, including 7.52 million tonnes to South Korea.
The players
PETRONAS
A Malaysian state-owned oil and gas corporation with a global LNG production capacity exceeding 40 million tonnes per year.
KOGAS
The South Korean state-owned utility company that acts as the primary purchaser for the nation's imported natural gas.
The details
PETRONAS leverages a diversified production portfolio, including the 29.3 million-tonne-per-year capacity Bintulu complex and its 25 percent stake in the LNG Canada project. To maintain supply chain agility, the company employs virtual pipeline systems and ISO tanks, allowing it to service customers without direct pipeline access. These operations are increasingly focused on reducing emissions intensity, such as the 60 percent reduction achieved at the new LNG Canada facility.
Timeline
1991: PETRONAS established its long-standing partnership with KOGAS.
2023: Renewables accounted for 8.4 percent of Korea's power generation.
February 2025: The 11th Basic Plan for Long-Term Electricity Supply was finalized.
June 2025: Operations commenced at the LNG Canada facility.
First half of 2026: PETRONAS supplied 20.29 million tonnes of LNG.
Market Landscape
PETRONAS is realigning its long-term supply contracts to match the capacity and decarbonization targets established by South Korea's 11th Basic Plan for Long-Term Electricity Supply. This follows a broader industry shift toward integrating carbon capture and lower-emissions logistics into LNG delivery.
Operators in the energy sector should monitor how new LNG supply configurations, particularly those featuring lower emissions profiles, impact procurement costs and compliance feasibility. Firms should watch for changes in regional infrastructure requirements as South Korea shifts toward a power mix projected to be 29.2 percent renewables by 2038.
The takeaway
Suppliers are increasingly differentiating their offerings by integrating carbon capture and flexible shipping solutions to meet international energy transition requirements. Operators should track the 11th Basic Plan's implementation to anticipate future shifts in regional import demand and technical standards.
Further reading
Learn more about shifting global energy logistics in our Oil and Gas section.
Source note: This article includes information reported by Pulse.
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