Liquefied natural gas (LNG) is natural gas that has been cooled for ease of transportation and storage. Korea imports LNG from other countries. The imported LNG is gasified into natural gas to supply consumers, and this gasification process generates cold energy.

Technological advances have allowed this cold energy to be used to manufacture liquid carbon dioxide, dry ice, etc., and also for cold storage and cold energy power generation. Industries that make use of cold energy are considerably well-developed in leading nations such as Japan.

In Korea, however, most of the cold energy has been discarded into seas surrounding LNG receiving terminals, and critics point out that this is a main cause of devastation in the ocean environment.

Recent technological developments enabling the utilization of this previously wasted cold energy have sparked growing interest in the associated industries. However, there are no institutional mechanisms in place to provide support. To stimulate cold energy-using industries, it is necessary to prepare measures to make use of not only the cold energy generated from the gasification of LNG, but also the natural gas produced incidentally. The current Act is not clear as to whether gas wholesale dealers and general urban gas business entities are permitted to supply natural gas to other business entities. This is likely to become a major obstacle for the future development of associated industries. Accordingly, the Amendment prescribes legal grounds for businesses using cold energy and also allows natural gas produced incidentally during the use of cold energy to be supplied to other locations, thereby aiming to lay the groundwork for new convergent energy industries.

Details

A. Define “LNG cold energy-using business” as a business that supplies gas wholesale dealers, general urban gas business entities, and subsidiaries of LNG cold energy-using business entities with natural gas produced during the process of gasifying LNG supplied by a gas wholesale dealer to use the cold energy generated (Article 2, subparagraph 4-5 newly inserted)

B. Require any person who intends to engage in an LNG cold energy-using business to obtain permission from the Mayor/Do Governor, and prescribe the permission requirements (Article 3, paragraphs 7 and 11 newly inserted)

C. Specify that an LNG cold energy-using business entity may only supply the urban gas generated during the process of using cold energy to gas wholesale dealers, general urban gas business entities, and subsidiaries of LNG cold energy-using business entities (Article 8-4 newly inserted)

Require any person who intends to engage in an LNG cold energy-using business to obtain permission from the Mayor/Do Governor, and prescribe the permission requirements (Article 3, paragraphs 7 and 11 newly inserted)