Press Releases

KoSIF Urges KOGAS to Strengthen LNG Supply Chain
Management Amid Rising Methane Risks

  -  KoSIF sends official letters to Korean Gas Corporation • Ministry of Climate, Energy, and Environment • Ministry of Trade, Industry, and Energy

- Demands a transition from estimates to direct measurements for overseas methane emissions in LNG supply chain

 - Urges the integration of measurement-based disclosure and LDAR implementation ahead of
KOGAS’s long-term contract renewals around 2030

Korea Sustainability Investing Forum (KoSIF) announced that it has dispatched an official letter to the Ministry of Climate, Energy and Environment (MCEE), the Ministry of Trade, Industry and Energy (MOTIE), and the Korea Gas Corporation (KOGAS), urgently calling for the establishment of a comprehensive management framework to control methane emissions generated across the overseas LNG supply chain.

[Image] Logo of Korea Sustainability Investing Forum

This following letter was drafted as methane emissions management within the global liquefied natural gas (LNG) supply chain emerges as a critical international priority. In particular, KOGAS is approaching the expiration and renewal of a large number of long-term LNG contracts around 2030. This represents a crucial momentum for incorporating methane management requirements into the terms of new and renewed contracts.

KoSIF pointed out that current methane emissions data across the overseas LNG supply chain rely on estimates based on standard emission factors, which limits accurate assessment and management. As Korea is the largest LNG importer, KOGAS is well positioned to improve methane management standards across the country’s LNG supply chain by introducing a system based on direct measurement, disclosure, and independent verification.

Methane remains in the atmosphere for a shorter period than carbon dioxide but has a substantially stronger warming effect in the decades immediately following its release. Measured over a 20-year period following emission, methane’s Global Warming Potential (GWP) is approximately 80 times that of carbon dioxide. LNG emits methane throughout its entire supply chain. According to the International Energy Agency (IEA), approximately 70% of these emissions occur in the upstream sector - gas extraction, production, and processing. Mitigating the climate impact of the LNG supply chain therefore requires a governance structure that covers not only in domestic transportation and power generation but also at the overseas production and supplier stages.

[Image] Proportion of Methane Emissions in LNG Supply Chain

Methane reduction has also become a major priority in the international climate policy. The Global Methane Pledge was launched at COP26 in 2021, and the European Union has significantly strengthened its methane management regulations. Notably, starting in 2027, overseas LNG companies exporting to the EU will be required to comply with measurement-based methane emissions reporting.

The South Korean government also signed the Global Methane Pledge and integrated its methane reduction targets into its Nationally Determined Contributions (NDCs). However, methane emissions management at the LNG supply chain level remains underdeveloped compared to that of international trends. KOGAS has set a goal to reduce its greenhouse gas emissions by 40%(300,000 tons) of its 2018 emissions by 2030 and has included Scope 3 (indirect emissions arising across the value chain) in its 2045 Carbon- Neutrality Roadmap. Yet, its current calculation of LNG Scope 3 emissions still relies on statistical estimates, falling short of real-time monitoring or demanding actual methane emission disclosures from overseas suppliers.

Accordingly, KoSIF has requested that KOGAS include methane management provisions in its future and newly renewed long-term overseas LNG contracts. The forum urged that these contracts require overseas suppliers to disclose methane emissions generated during LNG production based on measurement-based data, and to regularly inspect and repair potential methane leaks from their facilities. This practice, known as Leak Detection and Repair (LDAR), is a primary mechanism for reducing methane emissions across the oil and gas supply chain. 

KoSIF further called for a system to regularly track the methane management status of overseas suppliers through the CLEAN Initiative, in which KOGAS currently participates. This platform allows suppliers to share methane emissions data and management practices with member companies that import LNG through an annual survey. According to the 2025 CLEAN Report, only 10 out of 22 overseas LNG projects trading with KOGAS responded to this survey, underscoring the need to expand participation across all of its supplier projects and continuously monitor methane emission status throughout the supply chain.

KoSIF also called on the MOTIE to establish a policy framework and incentive system enabling KOGAS to strengthen its supply chain methane management, suggesting that a "supply chain methane management" clause be integrated into the Natural Gas Supply and Demand Plan. In addition, the forum proposed that the MCEE incorporate the overseas LNG supply chain into the scope of national climate policy framework. South Korea’s current methane reduction policies focus primarily on agriculture, waste, and energy. KoSIF recommended that, as Korea strengthens its greenhouse gas measurement, reporting and verification framework, the government introduce standards that encourage and give preference to the use of measurement-based data from overseas LNG supply chains.

Karl Yang, CEO of KoSIF, commented that, “For South Korea as a major LNG importer, methane management is a strategic task that goes beyond an environmental issue – it combines supply chain competitiveness, energy security, and climate responsibility.” He also added, “As a core buyer of domestic LNG imports, KOGAS possesses the market leverage to demand disclosure on measurement-based methane emissions and implementation of Leak Detection and Repair (LDAR) to overseas suppliers. It is time to move from estimate-driven management based on average emission factors toward a direct-measurement based methane management framework utilizing satellites, drones, and on-site measurements.” 

Director Yang further added, “The renewal of long-term contracts arriving around 2030 marks a critical turning point that will shape the emission profile of South Korea’s LNG supply chain for decades to come. Incorporating methane management requirements into new contracts and procurement policies will serve as the foundation for preemptively responding to tightening international methane regulations, securing competitiveness in lower-methane LNG, and establishing a stable, responsible energy supply chain.”

Beginning with the delivery of this letter, KoSIF plans to continue monitoring development and engage with KOGAS and relevant government ministries. Looking ahead, the forum plans to extend this engagement to major domestic energy companies with overseas supply chain operations, striving to ensure that a direct measurement-based methane management framework becomes firmly established across the domestic energy industry.