South Korean LNG importer Kogas reported lower gas sales in September compared to the same month last year due to lower demand for power generation.
Kogas sold 2.14 million mt last month, a drop of 4.5 percent compared to 2.24 million mt in September last year, according to a stock exchange filing.
September sales decreased by 7.5 percent compared to the previous month’s 2.31 million mt, Kogas said.
Purchases by power firms decreased by 6.7 percent year-on-year to 1.25 million mt in September. These purchases decreased by 12.8 percent compared to the previous month.
Moreover, Kogas said its city gas sales decreased by 1.3 percent year-on-year to 0.89 mt, while they rose by 1.1 percent compared to the month before.
During January-September this year, South Korean LNG imports dropped to 32.08 million mt from 34.02 million mt last year, customs data shows.
South Korea paid $27.7 billion for these LNG imports this year. This compares to $34.5 billion last year, the data shows.
Kogas operates 77 LNG storage tanks at five LNG import terminals in South Korea.
The large terminals include Incheon, Pyeongtaek, Tongyeong, and Samcheok, while the firm has a small-scale regasification terminal at the Aewol port on Jeju island as well.
Also, the firm is building a large terminal in Dangjin.
Kogas reported a decline of 9.7 percent in its sales during January-June to 18.46 million mt.
The firm said its city gas sales decreased by 10.8 percent during the period due to higher average temperature and higher unit sales price and decreased demand due to the decline in price competitiveness compared to LPG.
Also, sales to power firms decreased by 8.3 percent and Kogas said total power generation decreased due to the economic recession.