S.Korea plans new LNG supply, power price hike
The world's second-largest LNG importer South Korea may buy gas from North America, Australia and Russia to diversify supply and plans to raise power prices to slow domestic demand growth, Reuters reported quoting the Knowledge Economy Minister Choi Joong-kyung.
Prices in Asia for liquefied natural gas (LNG) have reached their highest this year as Japan and China buy more. Top LNG importer Japan has boosted imports to feed gas plants running hard to compensate for lost power from nuclear reactors shut after the March earthquake and tsunami.
"To cope with any worsening global market conditions in the wake of strengthening safety (standards) and delays in construction of nuclear power, we are preparing long-term measures to secure LNG," Choi told the Reuters Energy and Climate Summit in an email response to questions.
"We are considering various import sources such as North America, Australia and Russia to diversify import sources from the Middle East and southeast Asian regions that we heavily depend on, although no specific sources are yet set."
Despite the risk of adding to inflationary pressures, Asia's fourth-largest economy plans to slowly increase the country's electricity tariffs gradually to curb inefficient consumption and slow power demand growth, Choi said.
Asia's fourth-largest economy expects no problem securing supply despite tight LNG markets. The country has already signed deals to meet around 95 percent of LNG demand in 2011, Choi said.
South Korea would meet its remaining requirements from the spot market and with mid- or long-term contracts, Choi added.
Demand for this year may rise a little from last year, he said. South Korea imported 32.6 million tonnes of LNG last year, according to the ministry data.
Most of South Korea's LNG supplies are on long-term contracts, protecting the country from short-term changes in spot gas markets, he said. South Korea expects the country's gas inventory to continue to rise ahead of the next winter season, he said.
The top LNG suppliers to South Korea are Qatar, Indonesia, Malaysia and Oman.
Prices in Asia for liquefied natural gas (LNG) have reached their highest this year as Japan and China buy more. Top LNG importer Japan has boosted imports to feed gas plants running hard to compensate for lost power from nuclear reactors shut after the March earthquake and tsunami.
"To cope with any worsening global market conditions in the wake of strengthening safety (standards) and delays in construction of nuclear power, we are preparing long-term measures to secure LNG," Choi told the Reuters Energy and Climate Summit in an email response to questions.
"We are considering various import sources such as North America, Australia and Russia to diversify import sources from the Middle East and southeast Asian regions that we heavily depend on, although no specific sources are yet set."
Despite the risk of adding to inflationary pressures, Asia's fourth-largest economy plans to slowly increase the country's electricity tariffs gradually to curb inefficient consumption and slow power demand growth, Choi said.
Asia's fourth-largest economy expects no problem securing supply despite tight LNG markets. The country has already signed deals to meet around 95 percent of LNG demand in 2011, Choi said.
South Korea would meet its remaining requirements from the spot market and with mid- or long-term contracts, Choi added.
Demand for this year may rise a little from last year, he said. South Korea imported 32.6 million tonnes of LNG last year, according to the ministry data.
Most of South Korea's LNG supplies are on long-term contracts, protecting the country from short-term changes in spot gas markets, he said. South Korea expects the country's gas inventory to continue to rise ahead of the next winter season, he said.
The top LNG suppliers to South Korea are Qatar, Indonesia, Malaysia and Oman.
