South Korean LNG importing giant Kogas reported lower gas sales in May when compared to the same month last year.
Kogas sold 2.15 million mt last month, a drop of 14.9 percent when compared to 2.52 million mt in May last year, according to a stock exchange filing.
May sales dropped by 13.7 percent when compared to the previous month’s 2.49 million mt.
Purchases by power firms decreased by 21.9 percent year-on-year to 1.09 million mt in May. These purchases were down by 10.6 percent when compared to the previous month.
Moreover, Kogas said its city gas sales decreased by 6 percent year-on-year to 1.05 million mt, while they dropped by 16.8 percent when compared to the month before.
During January-May this year, South Korean LNG imports dropped slightly to 20.17 million mt from 20.25 million mt last year, customs data shows.
The costs of these imports rose by 7.2 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.