(LEAD) S. Korea's energy consumption down 2.9 pct in H1: report

(ATTN: UPDATES with more details in paras 3, 5-7; ADDS with new information from
para 11)
By Lee Joon-seung
SEOUL, Sept. 17 (Yonhap) -- South Korea's energy consumption decreased 2.9
percent in the first half of this year due to the sluggish economy and warmer
weather conditions, a government report showed Thursday.

The contraction marks the first time in 11 years that energy consumption measured
in tons of oil equivalent (TOE) has fallen compared to the year before, the
Ministry of Knowledge Economy said.
The last time energy consumption fell compared to the previous year was in 1998
when the country was struggling to cope with the Asian financial crisis.
From January through June, the country used up 91.3 million TOEs of energy, down
from 94.0 million TOEs tallied for the first half of 2008.
In terms of imports, South Korea bought US$40.7 billion worth of energy
resources, down 42.3 percent on-year. The plunge was directly related to lower
prices for crude oil, which makes up the bulk of imports in terms of volume, as
imports were down just 1.3 percent, the report said.
The average price for Dubai crude, the benchmark, fell from $104.2 per barrel in
2008 to just $51.7 per barrel this year.
"Unseasonably warm winter months this year helped cut back on heating while the
weak domestic economy caused manufacturers to make less products resulting in
less energy being used by the industrial sector," a ministry official said.
Industrial energy use, which accounts for 57 percent of all energy used in South
Korea, fell 3.2 percent on-year, while energy used in homes and in the commercial
sector was down 4.6 percent. Transportation-related use contracted 0.9 percent
annually, but the public sector used 5.6 percent more energy than the year
before.
The ministry official said that government conservation measures helped
contribute to the overall drop in fuel and electric power consumption.
For the second half, the ministry, which is in charge of the country's industrial
and energy policies, said milder summer months have affected electricity demand,
potentially leading to less energy usage for the entire year.
Efforts will be made to get businesses that use a lot of energy to join
"negotiated agreement" systems to help them cut back, replacing the so-called
voluntary agreement system currently in use, the ministry added.
The negotiated agreement regime sets specific goals for cut backs that could
result in fines in case of non-compliance. The tighter system is expected to be
introduced on November.
Other measures call for strengthening oversight over energy used by the public
sector.
South Korea has come under increasing pressure to cut back on energy use and the
amount of greenhouse gases it emits as countries around the world engage in
conservation programs to try and stop global warming.
Seoul is currently not obliged to cut back on greenhouse gas emissions under the
Kyoto Protocol, although it may be compelled to join in the coming years.
The Kyoto Protocol, adopted in late 1997, is an extension of the international
Framework Convention on Climate Change that went into effect on Feb. 16, 2005. Of
its over 180 signatories, Japan and 36 countries from the European Union are
Annex 1 countries that have pledged to cut greenhouse gases. South Korea is a
signatory, but not currently required to cut back on greenhouse gases.
yonngong@yna.co.kr
(END)