South Korean LNG importer Kogas reported lower gas sales in February compared to the same month in the year before due to lower demand for power generation.
State-owned Kogas sold 3.50 million mt last month, a drop of 11.1 percent compared to 3.93 million mt in February 2023, according to a stock exchange filing.
February sales decreased by 20.8 percent compared to the previous month’s 4.42 million mt, Kogas said.
Purchases by power firms decreased by 27 percent year-on-year to 1.28 million mt in February. These purchases dropped by 20.8 percent compared to the previous month.
Moreover, Kogas said its city gas sales increased by 1.6 percent year-on-year to 2.22 million mt while they dropped by 20.8 percent compared to the month before.
Official data for South Korean LNG imports in February is not yet available.
South Korean LNG imports in January rose to 4.91 million mt from 4.78 million mt in January 2023, customs data previously showed.
South Korea paid $3.47 billion for these LNG imports. This compares to $6.2 billion last year, the data showed.
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 and expects to launch the first phase in December 2025.
Kogas sold 34.6 million mt during 2023, down from 38.3 million mt in 2022.
The firm said in its earnings report last month that residential demand decreased due to higher average temperature, while industrial demand dropped due to the economic recession.
Kogas said total power generation decreased due to the economic recession and due to increase in power generation by direct LNG sourcing companies.