Korea Set to Reopen LNG Capacity Market Amid Construction Resumption Plans
South Korea is reviving its liquefied natural gas (LNG) capacity market to clear the way for new construction after a two-year pause. The Ministry of Climate, Energy and Environment plans to launch a working group to redesign the system before seeking feedback from district-energy operators through public hearings.
The LNG capacity market uses competitive bidding to determine how much LNG-fired capacity can be built by district-energy and cogeneration operators. The goal is to reopen the market by year-end, potentially paving the way for combined-cycle gas power plants that supply heat to new towns.
Currently, new and expanded LNG plants can only be approved through the capacity market. Reopening it could also enable LNG power plants in designated special zones for mega-projects. The ministry plans to require district-energy operators participating in this year's bidding to supply a certain share of their heat through heat pumps.