City Gas Becomes One
of Major Primary Energies

Its share of total energy consumption rises to 7.81 percent

Korea City Gas Association (KCGA) is a society of LDCs (local distribution companies), with the purpose of fostering the sound development of the city gas industry, as well as of contributing to the promotion and culture of the industry. KCGA, after the inaugural meeting of April 1984, became a corporation aggregate by acquiring an approval from the relevant government authority ― the Ministry of Commerce, Industry and Energy (MOCIE). Initially, KCGA started its business with 1 department and 2 sections. KCGA, nowadays, composes itself of 17 personnels of 3 teams ( General affairs & Public Relations, Planning, and Safety Management) under the command of a standing vice-presidency. It has nationwide 33 LDCs as regular member companies, and 3 special member companies ― Korea Gas Corporation, SK E&S, and GS Caltex.
South Korea experienced a couple of oil shocks ― the first in 1973-74, and the second in 1979. The two oil crises brought such a major change to the existing structure of energy supply that has accelerated the diffusion of natural gas as a substitute of petroleum.
As mass production system of LPG was secured in 1970s, the Korean government has driven the city gas project forward with the intention of urban fuel modernization. As of Oct. 1, 1970, the first city gas by means of LPG+Air mix (13A gas) was demonstrated to 3,000 families of Dongbuichon-dong, Seoul. Then, the completion of Seoul municipal city gas plant (now, Seoul City Gas Co. Ltd) started providing 6,000 families with naphtha-cracked gas for residential cooking of Yeongdungpo and Mapo districts in Seoul on Nov. 14, 1972. Entering the 1980s,
the expansion of city gas business was accelerated, and the private LDCs nationwide were established to start the supply of the 13A gas (LPG+Air mix).
Since liquefied natural gas (LNG) was first imported from Indonesia through Korea Gas Corporation in October 1986, the consumption of natural gas as city gas has showed explosive growth reaching 189.7 million Nm3 in 1987, 2.95 billion Nm3 in 1993, and 14.9 billion Nm3 in 2003. And the consumption of 17.3 billion Nm3 through 25,000 km distribution pipeline in 2005 literally proved itself as one of main primary energies meeting the demand from residential to industrial applications. Further, as of 2005, city gas occupied a share of 7.81% of total energy consumption in South Korea. with its share gradually increasing.
The robust growth of city gas, however, has some dark sides in it ― the big explosion of Ahyun-dong, Seoul, and the subway construction area explosion in Daegu City. Those two big consequences endowed the industry with invaluable lessons and motivations leading to thorough gas safety ― intensified investment in gas safety management and in building advanced safety control systems to prevent gas-related accidents.
KCGA, with a view to meeting the double targets ― not only advocating the benefits of member companies within its reach but advancing the city gas industry as well, is realizing so many challenges and will be best faithful in its role and responsibility.
KCGA sees the growth in LNG demand due to UNFCCC (United Nations Framework Convention on Climate Change) to have substantial effects on the change of the industry environment. In addition, the ongoing major businesses for securing stable and safe supply, intensively focused on by KCGA are :
● policy recommendations to the government, to promote mutual benefits of city gas and district heating businesses ;
● expansion of gas supply to economically backward areas ;
● promotion of NGV (natural gas vehicle), to improve air pollution ;
● building a foundation for CES (community energy system) business, which provides both electricity and heat ;
● development of renewable energy ;
● research on improving the gas measurement system ;
● optimization of pipeline burial depth ;
● upgrade of gas safety management.
KCGA and the city gas industry, through non-stop research over the various challenges to face actively the ever-changing energy market, will best contribute to upgrading people's standard of life and to promoting the industrial development of the nation with stable supply of the environment-friendly and sustainable development energy. nw

KCGA Chairman Kim Young-hoon