Jeju LNG Power Plant Approval Process Faces Scrutiny Over Environmental and Economic Concerns

Three environmental groups have filed a public interest audit request over a new liquefied natural gas (LNG) power plant planned for Jeju Island, alleging that the environmental review process and economic feasibility calculations were carried out improperly.

The power company and Jeju provincial government maintain there was no procedural problem. The project, a 154-megawatt LNG combined-cycle plant, is being pushed forward by Korea East-West Power (KEWP) in Dongbok-ri, Gujwa-eup, Jeju City.

According to the groups, KEWP obtained approval for environmental assessment items from the Jeju governor instead of the Minister of Climate, Energy and Environment. They also claim that the scope of the assessment area was narrowed to just a 500-meter radius around the project site, excluding a nearby wetland protection area.

The groups further argue that the operator limited its assessment of climate change impact to the plant site itself, whereas greenhouse gases affect the whole of Jeju Island. They also point out that the project's net present value (NPV) over its full term came out at negative 232.4 billion won, and despite this, the project budget rose from 488 billion won to about 648.8 billion won, an increase of roughly 32.9 percent.

The Jeju provincial government defended the legitimacy of the process, stating that authority over setting the scope of the impact assessment was transferred from the central government to Jeju under the Jeju Special Act. Officials also claimed that consultation for climate change impact assessment was completed last November by the Ministry of Climate, Energy and Environment.