South Korean LNG importing giant Kogas reported lower gas sales in June when compared to the same month last year.
Kogas sold 2.10 million mt last month, a drop of 15.4 percent when compared to 2.49 million mt in June last year, according to a stock exchange filing.
June sales dropped by 2.2 percent when compared to the previous month’s 2.15 million mt.
Purchases by power firms decreased by 18.9 percent year-on-year to 1.19 million mt in June. These purchases rose by 9.2 percent when compared to the previous month.
Moreover, Kogas said its city gas sales decreased by 10.4 percent year-on-year to 0.9 mt, while they dropped by 14.1 percent when compared to the month before.
During January-June this year, South Korean LNG imports rose to 23.11 million mt from 22.76 million mt last year, customs data shows.
The costs of these imports rose by 7 percent when compared to the year before, 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 7.8 percent in its sales during January-March to 11.71 million mt.
The firm said its city gas sales decreased by 11.8 percent during the period due to a lower average temperature and decreased industrial demand due to the decline in price competitiveness compared to LPG.
Also, sales to power firms decreased by 2 percent and Kogas said total power generation decreased due to the economic recession.