South Korea Gas Equipment Market Overview, 2031

Key Insights

• According to the research report, "South Korea Gas Equipment Market Outlook, 2031," published by Bonafide Research, the South Korea Gas Equipment Market is anticipated to add to more than USD 1.12 Billion by 2026-31.
• South Korea's gas-equipment market presents a paradox: the world's third-largest LNG importer is expanding terminal capacity while facing structurally declining gas demand. KOGAS operates five LNG terminals with 12.16 million kilolitres of storage across 77 tanks, yet average utilisation was only 27% over 2024–2025. The 16th Long-Term Natural Gas Supply and Demand Plan projects domestic demand to decline by approximately 11.3% between 2026 and 2038, meaning equipment demand is increasingly driven by replacement, efficiency upgrades, and new energy vectors rather than volumetric growth.
• LNG terminal construction continues despite declining throughput. POSCO International completed its first private LNG terminal at Gwangyang in 2026 with 930,000 cubic metres of storage, and is investing a further KRW 930 billion for a second terminal. Doosan Enerbility secured a KRW 560 billion contract from KOGAS to build three 270,000-cubic-metre LNG storage tanks for the Dangjin Phase 2 project, with completion targeted for December 2029.
• Cryogenic equipment localisation has become a strategic priority. KOGAS successfully localised low-temperature LNG pumps operating at minus 162 degrees Celsius with Hyundai Heavy Industries Turbo Machinery, conducting 240 operational tests at the Pyeongtaek terminal. Domestic pumps cost approximately KRW 960 million versus KRW 1.2 billion for imports, achieving 20% cost reduction and cutting lead times from 20 to 12 months. KOGAS expects KRW 47 billion in revenue by 2032, with export ambitions including Indonesia.
• Hydrogen blending is advancing toward commercial deployment. KOGAS is conducting safety verification for blending up to 20% hydrogen into the distribution network at its Pyeongtaek test facility, with the government identifying this as a priority in its 2026 policy briefing. Research published in the International Journal of Hydrogen Energy in April 2026 found that hydrogen blending significantly impacts pressure regulators and compressors, requiring reassessment of thermal management strategies and potential equipment replacement.

Market Outlook

• LNG terminal maintenance and equipment replacement will remain the most dependable demand channel. KOGAS's five operating terminals contain 188 low-pressure LNG pumps, 143 high-pressure pumps, 40 high-pressure ORV vaporisers, 75 SCV vaporisers, and 43 boil-off-gas processing facilities. With terminals at Pyeongtaek, Incheon, Tongyeong, and Samcheok having operated for between 12 and 40 years, replacement demand for cryogenic pumps, vaporisers, and BOG compressors is substantial. Successful pump localisation establishes a template for extending domestic manufacturing to other critical cryogenic components.
• Hydrogen infrastructure is creating early-stage demand for specialised equipment. The numerical modelling research on South Korea's high-pressure transmission pipeline found that hydrogen blending increases volumetric flow rates, potentially exceeding maximum flow coefficients of existing pressure regulators and requiring equipment replacement. For compressors, hydrogen's lower density and compressibility increase power consumption and weaken flow redistribution capability, reducing network controllability. These findings indicate significant equipment upgrades will be required across the transmission network as blending progresses from demonstration to commercial deployment.
• Biogas and biomethane will generate a decentralised equipment market. The mandatory production system creates obligations for hundreds of producers including large-scale livestock operations and food waste processors. Biogas generation presents particular technical challenges because variable methane content and corrosive impurities demand higher control technology than conventional natural gas systems, creating demand for gas upgrading, purification, compression, and monitoring equipment. The localisation programme targets fuel control valves, engine bodies, bearings, and intelligent control systems capable of detecting hydrogen sulphide and optimising generator operation.

Policies & Regulatory Landscape

• The regulatory framework is administered by the Ministry of Trade, Industry and Energy and the Korea Gas Safety Corporation, with technical standards codified in the KGS Code system. The code was updated in 2026 with new provisions for general city gas supply facilities and biogas manufacturing inspection standards. Imported equipment requires conformity certification, and the Korea Gas Safety Corporation continues strengthening safety requirements, including agreements with regional fire authorities to replace LPG rubber hoses with metal piping and install automatic gas leak shut-off devices at small commercial establishments.
• Biogas regulation is becoming increasingly prescriptive. The Act on the Promotion of Production and Use of Biogas using Organic Waste established mandatory production targets for public-sector producers from 1 January 2025, with a 50% rate rising to 80% by 2045, and for private-sector producers from 1 January 2026, with a 10% rate rising to 80% by 2050. The Ministry has published 2026 output targets as subordinate legislation, covering livestock operations with more than 20,000 pigs and food waste dischargers emitting 1,000 tonnes or more annually.
• Hydrogen regulation is advancing through safety verification and standards development. KOGAS is conducting safety verification for blending up to 20% hydrogen into the city gas distribution network at its Pyeongtaek test facility, with the government prioritising hydrogen blending in its 2026 gas-sector policy briefing. The numerical research on hydrogen effects on regulators and compressors provides technical evidence that will inform future standards for blending limits, equipment specifications, and operational requirements, though specific regulatory limits and timelines remain under development.

Gas Equipment Procurement & Industry Impact

• Localisation of critical equipment has become a central procurement objective. KOGAS has demonstrated that domestic manufacturing of cryogenic LNG pumps is technically viable and commercially advantageous, achieving 20% cost savings and reducing lead times by eight months. The model of opening operating facilities as testbeds for SME technology validation has been recognised as best practice for public-private cooperation. The Ministry of Climate, Energy and Environment is applying the same approach to biogas generation systems, funding development of fuel control valves, engine bodies, bearings, and intelligent control systems over 2026–2029.
• Digitalisation and AI are transforming pipeline operations and creating new equipment categories. KOGAS developed the KOSPA system incorporating AI technology, achieving annual production cost savings of over KRW 6.9 billion and reducing supply forecast errors from 10% to approximately 3%. Seoul City Gas is deploying IoT-based pressure regulators, explosion-proof measurement devices, and precision surveying solutions, creating demand for sensors, communication modules, and data integration platforms alongside conventional gas equipment.
• Replacement demand is substantial across South Korea's mature gas infrastructure. The country operates 5,346 kilometres of main transmission pipelines and 55,000 kilometres of city gas distribution pipelines serving 19.99 million households, with the main pipeline designed as a single-loop network for supply redundancy. Extensive populations of ageing compressors, valves, regulators, meters, and control systems require ongoing replacement driven by safety requirements, efficiency improvements, and technological obsolescence.
• Hydrogen blending projects are creating new procurement categories. Research findings on hydrogen effects on pressure regulators and compressors indicate that equipment designed for conventional natural gas may require replacement or modification as blending progresses. Buyers will increasingly evaluate regulators for increased flow coefficients, compressors for higher power consumption and reduced controllability, and metering systems for accuracy with varying gas compositions. Progression from demonstration to commercial deployment will require certification and testing protocols for hydrogen-compatible equipment, creating first-mover advantages for early qualifiers.

Industry News

• In August 2026, Doosan Enerbility was awarded a KRW 560 billion contract by KOGAS to construct three 270,000-cubic-metre LNG storage tanks for the Dangjin LNG Terminal Phase 2 project, with construction starting September 2026 and completion by December 2029.
• In June 2026, KOGAS announced successful localisation of low-temperature LNG pumps operating at minus 162 degrees Celsius, developed with Hyundai Heavy Industries Turbo Machinery, achieving 20% cost reduction and cutting procurement lead times from 20 to 12 months.
• In June 2026, the Ministry of Climate, Energy and Environment launched a KRW 36.6 billion programme to localise biogas power generation systems, funding development of fuel control valves, engine bodies, and intelligent control systems over 2026–2029.
• In April 2026, research published in the International Journal of Hydrogen Energy analysed hydrogen blending effects on pressure regulators and compressors in South Korea's high-pressure transmission pipeline, finding significant impacts on flow coefficients and compressor power consumption.

Segment Analysis

Gas Equipment By Type
• Gas Delivery Systems in South Korea connect five KOGAS LNG terminals, private terminals at Gwangyang and Ulsan, a 5,346-kilometre main transmission network, and 55,000 kilometres of distribution pipelines serving 19.99 million households. Equipment selection must account for the single-loop network design enabling supply rerouting and the transition toward hydrogen blending. The Gwangyang expansion and Dangjin Phase 2 project create demand for cryogenic delivery systems, while hydrogen blending at up to 20% adds requirements for specialised valves, metering, and quality-control equipment.
• Gas Regulators control pressure across LNG terminals, transmission pipelines, distribution networks, and industrial facilities. Korean buyers evaluate inlet and outlet pressure, flow capacity, gas composition, temperature range, and response characteristics. Research on hydrogen blending indicates that decreased Joule-Thomson coefficients reduce preheating energy requirements, while increased volumetric flow rates elevate required flow coefficients, potentially exceeding existing regulator capacities and necessitating replacement. Replacement demand across 5,346 kilometres of main pipeline remains substantial.
• Flow Devices include meters, valves, flow-control equipment, and automation systems. Accurate measurement is critical for 19.99 million household connections, LNG custody transfer, and industrial supply. The KGS Code updated inspection standards for city gas supply facilities in 2026, and Seoul City Gas is deploying IoT-based pressure regulators and explosion-proof measurement devices. Hydrogen blending creates new requirements for measurement technologies capable of maintaining accuracy with varying gas compositions, while biogas injection requires analysers capable of verifying gas quality against network specifications.
Gas Equipment By Application
• Oil and Gas remains the dominant end-use sector, encompassing LNG import, transmission, distribution, and emerging hydrogen and biogas integration. KOGAS operates five LNG terminals and supplies gas to 19.99 million households, with import sources spanning the Middle East, Southeast Asia, Russia, Australia, and the United States. Equipment requirements focus on terminal maintenance, pipeline replacement, digitalisation, and hydrogen blending readiness. The shift toward local manufacturing of cryogenic pumps and biogas generators reflects a broader strategy to reduce import dependence for critical equipment.
• Chemical and Petrochemical facilities use natural gas for feedstock, hydrogen production, process heat, and refining. South Korea's industrial clusters in Ulsan, Yeosu, and Daesan represent major gas consumers requiring reliable high-pressure supply and precise measurement. Facilities require products capable of operating under demanding pressure and temperature conditions, with growing emphasis on hydrogen compatibility as industrial decarbonisation progresses. Reliability, process continuity, and domestic spare-parts availability are key purchasing considerations for continuous-process industries.
• Power Generation remains a major gas-equipment application, with natural gas supporting combined-cycle plants and district heating. KOGAS is constructing pipeline connections for the Gasan-Gapyeong and Gongju Combined Cycle Power Plant projects scheduled for completion between 2026 and 2028. Equipment includes fuel-gas skids, filters, regulators, meters, valves, emergency shutdown systems, and combustion controls. Gas-fired generation provides flexibility for balancing a power system with growing renewable capacity, though long-term demand is projected to decline.
Gas Equipment By End-Use Industry
• Generation in South Korea encompasses LNG regasification, city gas production, biogas production, and emerging hydrogen production. The biogas generator localisation programme addresses specific technical challenges where variable methane content and corrosive impurities demand higher control technology than conventional natural gas systems. Equipment requirements include compressors, separators, purifiers, valves, controls, meters, analysers, and detection systems. The intelligent control system under development aims to automatically optimise generator operation and predict failures, representing a significant advance in process control for renewable gas applications.
• Storage covers LNG storage at six terminals with combined capacity of 12.16 million kilolitres across 77 tanks, plus underground facilities and emerging hydrogen storage. The Dangjin Phase 2 project will add three 270,000-cubic-metre tanks by December 2029, while POSCO's Gwangyang terminal will reach 1.33 million cubic metres of storage capacity. Equipment demand includes cryogenic pumps, valves, pressure-control systems, meters, monitoring, and integrity-management technologies. Hydrogen storage could introduce additional requirements for specialised materials and compression as blending projects advance.


Considered in this report
• Historic Year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031



Aspects covered in this report
• Gas Equipment with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Equipment
• Gas Delivery Systems
• Gas Regulators
• Flow Devices
• Purifiers & Filters
• Gas-Generating Systems
• Gas Detection Systems
• Cryogenic Products
• Accessories

By End-Use Sector
• Metal Fabrication & Metalworking
• Chemical & Petrochemical
• Healthcare & Medical
• Oil & Gas
• Food & Beverage
• Automotive & Transportation
• Electronics & Semiconductors
• Others



By Process
• Generation
• Storage
• Transportation & Distribution
• Detection