SEOUL – Environmental organizations, including the South Chungcheong Federation for Environment and Climate Solutions, have filed a public audit request with the Board of Audit and Inspection (BAI) to halt the expansion of the Dangjin Liquefied Natural Gas (LNG) terminal in South Chungcheong Province, citing concerns over economic feasibility and environmental impact.

In a press conference held in front of the BAI in Jongno-gu, Seoul, on March 17, the groups argued that the expansion project, which aims to increase LNG storage capacity by 2.7 million ㎘, is based on outdated projections of LNG demand. "The preliminary feasibility study conducted in 2019 assumed a continuous increase in LNG demand. However, recent forecasts both domestically and internationally clearly indicate a decline in LNG demand, making these additional gas facilities likely to become stranded assets," stated a representative from Climate Solutions.

The groups also pointed out that the project contradicts the government's carbon neutrality goals. "The government's commitment to reducing reliance on fossil fuels like LNG is being undermined by this expansion. This project is in direct conflict with national policies aimed at combating climate change," they emphasized.

The Ministry of Trade, Industry and Energy's '15th Long-Term Natural Gas Supply and Demand Plan' forecasts a 1.38% annual decline in LNG demand, from 45.09 million tons in 2024 to 37.66 million tons in 2036. The International Energy Agency (IEA) has also predicted a global decrease in LNG demand starting from 2030.

The Dangjin LNG terminal expansion, located in the Dangjin Seokmun National Industrial Complex, is scheduled to commence construction in the first quarter of this year, following a preliminary feasibility study completed six years ago. Environmental groups are now calling for a thorough audit to reassess the project's economic and environmental viability.

"We urge the BAI to conduct a comprehensive audit to prevent the waste of public funds and mitigate potential environmental damage. A revised demand forecast and feasibility study, reflecting the current trends of declining LNG demand, are essential," the groups demanded.

The controversy highlights the growing tension between South Korea's energy security needs and its commitment to reducing greenhouse gas emissions. As the nation strives to balance these competing priorities, the fate of the Dangjin LNG terminal expansion remains uncertain.

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