South Korean LNG importing giant Kogas reported a rise in its May gas sales due to higher demand in the power generation sector.
Kogas sold 2.52 million mt last month, up 9.1 percent when compared to about 2.31 million mt the firm had sold in May 2021, according to a stock exchange filing.
May sales decreased by 7 percent when compared to the previous month’s 2.71 million mt.
Purchases by power firms rose by 19.9 percent year-on-year to 1.39 million mt in May. These purchases rose by 7.4 percent when compared to the previous month.
Furthermore, Kogas said its sales to retail gas companies for households and businesses declined by 1.9 percent year-on-year to 1.12 million mt, while these purchases dropped by 20.3 percent compared to the month before.
Kogas currently operates four large LNG terminals. These include Incheon, Pyeongtaek, Tongyeong, and Samcheok, but the firm has a small-scale regasification terminal at the Aewol port on Jeju island as well.
On top of these facilities, the LNG importer is building a large terminal in Dangjin.
Kogas imports LNG from plants located around the globe and it recently signed a deal with BP to buy US LNG for a period of 18 years.
In parallel, the firm is developing its hydrogen business and recently signed two deals.
Kogas aims to utilize its LNG infrastructure and knowledge gained in the LNG industry over the years to develop a hydrogen production and supply chain.