South Korea Oil and Gas - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The south korea oil and gas market size market is expected to grow from USD 3.58 billion in 2025 to USD 3.67 billion in 2026 and is forecast to reach USD 4.17 billion by 2031 at 2.58% CAGR over 2026-2031. This report is Segmented by Sector (Upstream, Midstream, and Downstream), Location (Onshore and Offshore), and Service (Construction, Maintenance and Turn-Around, and Decommissioning). The Market Sizes and Forecasts are Provided in Terms of Value (USD).

South Korea Oil And Gas Market Trends and Insights

LNG Import-Capacity Expansion & New Private Terminals

South Korea's oil and gas market momentum gains from a new wave of privately financed LNG terminals that diversify supply routes beyond KOGAS's legacy network. POSCO International's Gwangyang facility - South Korea's first private terminal - adds 1 million tons annual capacity and catalyzes third-party procurement. Concurrently, the KRW 1.4 trillion Yeosu Myodo project, slated for completion in 2026, introduces a 3 million-ton import capability with hydrogen-ready tanks. These expansions elevate national import capability to 65 million tons by 2027, enabling portfolio optimization among suppliers in Australia, Qatar, and the United States. Heightened competition lowers delivered gas costs for power generators and petrochemical users, while modular design eases future conversion to blue ammonia or liquid hydrogen handling. Strategic redundancy further insulates the South Korean oil and gas market from geopolitical shocks, thereby reinforcing its energy security prerogatives.

Jet-Fuel-Led Rebound in Refining Margins

Aviation traffic through Incheon International Airport rebounded to 75 million passengers in 2024, lifting jet-fuel cracks for Korean refiners to multi-year highs. SK Innovation reported 40% higher jet-fuel margins year-over-year in Q4 2024, supplying carriers across Northeast Asia. GS Caltex optimized its Yeosu hydrocracker to reach 18% jet-fuel yield, while S-Oil’s USD 6.9 billion Shahin complex targets a 20% yield by 2026. Robust cash flows fund decarbonization retrofits such as carbon-capture units and hydrogen co-firing, sustaining competitiveness despite falling gasoline demand. The uplift also supports dividend stability, preserving investor confidence during the energy transition. As international travel continues to grow, jet-fuel-rich slates provide refiners a margin hedge until electric-aviation alternatives mature.

Structural Decline in Gas-Fired Power Demand Post-2030

The 10th Basic Plan trims gas-fired generation’s share from 32.1% in 2022 to 21.6% by 2036, eroding long-term LNG baseload. Accelerating solar and wind rollouts, as well as nuclear restarts, displaces flexible gas, while K-ETS carbon prices narrow spark spreads. Korea Southern Power’s pledge to retire 2.4 GW of gas capacity by 2035 demonstrates growing momentum towards closure. Lower plant load factors and pressure on offtake contracts jeopardize new LNG terminal economics. Operators mitigate risk by co-firing hydrogen blends, yet material volumes remain years away. Consequently, stranded-asset provisions weigh on balance sheets across the South Korean oil and gas market.

Other drivers and restraints analyzed in the detailed report include:

• Expansion of Strategic Crude & Fuel Stockpiles
• Hydrogen & Blue-Ammonia Build-Out Leveraging LNG Assets
• LNG Terminal Over-Build & Stranded-Asset Risk

Segment Analysis

The downstream segment commanded 63.15% of the South Korean oil and gas market share in 2025, anchored by 3.2 million barrels per day of world-scale refining capacity located at Ulsan, Yeosu, and Onsan. Export-oriented product slats generate stable forex earnings and underpin the South Korean oil and gas market size for downstream players. High-complexity indices allow flexible crude selections, preserving gross refining margins under volatile feedstock differentials. Meanwhile, the midstream segment, although smaller, advances at a 4.92% CAGR to 2031, driven by LNG-terminal additions, hydrogen pipelines, and strategic stockpiling initiatives that position South Korea as Northeast Asia’s hub. Integrated operators are increasingly viewing midstream investments as a bridge to future hydrogen logistics, leveraging brownfield assets to minimize capital expenditures.

Strategically, downstream majors embark on deep-integration projects, such as S-Oil’s USD 6.9 billion Shahin complex, which couples fuel production with olefins, aromatics, and hydrogen-ready units. Such megaprojects extend value chains and mitigate declines in refined-product demand. Midstream players capitalize on policy incentives, including tax credits for blue-ammonia import facilities, and collaborate with utilities to pool offtake risk. This dual-track evolution preserves cash flow today while positioning the South Korean oil and gas market for low-carbon competitiveness.

Complete Report Scope:

• By Sector
  • Upstream
  • Midstream
  • Downstream
• By Location
  • Onshore
  • Offshore
• By Service
  • Construction
  • Maintenance and Turn-around
  • Decommissioning

List of Companies Covered in this Report:

• Korea National Oil Corporation (KNOC)
• Korea Gas Corporation (KOGAS)
• SK Energy
• GS Caltex
• S-Oil Corporation
• Hyundai Oilbank (HD Hyundai Oilbank)
• POSCO International
• SK Gas
• SK Enmove (Lubricants)
• HD Hyundai Heavy Industries (Offshore/CCS)
• Samsung C&T (EPC & LNG)
• Daesung Industrial
• CNCITY Energy
• OZ-SEPA (Spill-remediation tech)
• CarbonCo (CCUS)
• GS EPS (Gas-fired IPP)
• Korea Southern Power (KOSPO)
• Korea Midland Power (KOMIPO)
• SK Innovation E&S (Hydrogen)
• KNOC-SK Joint Storage (Yeosu/Ulsan)
• Samsung Engineering (Petrochem & CCUS EPC)

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support