Korean LNG expansion
May 27 (LNGJ) - South Korean project company GS Engineering and Construction is advancing with plans to build an LNG import terminal in the southwestern city of Yeosu in South Jeolla Province, which would be Korea’s eighth import facility. GS Engineering estimates the terminal will cost around 600 billion South Korean won ($440M) and will have two LNG storage tanks, each with a capacity of 200,000 cubic metres as well as auxiliary facilities and port infrastructure.
The company added that once completed by around 2028, the terminal would supply regasified LNG to industrial companies and power plants at the national industrial complex at Yeosu. The oldest Korean terminal was completed in 1986 at Pyeong-Taek, followed by an expanded network comprising Incheon (1996), Tong-Yeong (2002), Gwangyang (2005), Samcheok (2014), Boryyeong (2016) and Jeju (2019).
Woodside Energy signs long-term LNG cargo supply agreement with main South Korean importer Kogas
Woodside Energy, the leading supplier of Australian LNG cargoes to North Asia, has signed a sale and purchase agreement with the South Korean state-owned utility Korea Gas Corp. as more Asian nations seek to secure long-term supplies for energy security.
The SPA provides for the supply of around 500,000 tonnes per annum of LNG for a period of 10.5 years on a delivered basis whereby Woodside supplies the shipping.
The supply deals with the Koreans begin in 2026 and will come from Woodside’s portfolio.
“LNG delivered to Kogas under the SPA will be sourced from uncommitted volumes across Woodside’s global portfolio, including the Scarborough Energy Project which is targeting first LNG cargo in 2026,” explained Woodside.
Kogas already receives Australian LNG cargoes from other regional projects such as Gladstone LNG in Queensland.
Queensland LNG
The GLNG plant is operated by Adelaide-based Santos and Kogas is a shareholder along with French major TotalEnergies and Malaysia’s Petronas.
The state-owned Korean utility has been a long-term regional importer from nations like Indonesia and Malaysia as well as Qatar and Oman in the Middle East.
Woodside Chief Executive Meg O’Neill said that the SPA was significant as Woodside’s first long-term supply agreement into Korea, the world’s third-largest LNG market.
She said the agreement reinforced the ongoing contribution of Woodside’s LNG towards the energy security needs of major customers in the region.
“Woodside is pleased to be a long-term supplier of LNG to Kogas, a leading global energy company and one of the world’s largest LNG importers,” said O’Neill.
“This agreement is further demonstration of ongoing robust demand for Woodside’s products from major energy customers in our region,” O’Neill stated.
LNG for power
Kogas President and CEO Choi Yeon-Hye said she was pleased to conclude the SPA with Woodside.
“This SPA has enabled Kogas to enlarge the customer base in the domestic power market, reinforcing our role as a leading natural gas supplier in Korea,” she stated.
“By leveraging this SPA, we look forward to further expanding our business opportunities with Woodside in the LNG industry,” added Choi.
Kogas controls or jointly controls five out of South Korea’s seven import terminals at Incheon, Pyeongtaek, Samcheok, Tong-Yeong and Jeju.
The other two terminals are at Gwangyang and Boryeong and are used respectively by steelmaker POSCO and other utilities.
South Korean LNG imports are steady as storage increases and deliveries set to match the levels of last year
The South Korean government said that liquefied natural gas imports have remained steady and measures were being taken to boost storage for the winter because of continued global geopolitical uncertainties.
Largest Japanese and Korean LNG buyers JERA and Kogas to cooperate on trading and cargo swaps
JERA Co. Inc., the largest Japanese liquefied natural gas buyer, and Korea Gas Corp. (Kogas), its counterpart in South Korea, have signed an accord to cooperate in the LNG business.
Korea’s POSCO International holds ceremony to launch new LNG terminal project near Gwangyang facility
POSCO International, the energy subsidiary of South Korean steel company POSCO, has held a ground-breaking ceremony for a planned new LNG terminal near the site of the existing Gwangyang facility in South Jeolla province.
South Korean authorities tackle huge forest fire near Samcheok LNG terminal and Hanul nuclear plant
South Korean authorities said fire-fighters were still tackling a huge forest fire that at one time had threatened the Samcheok liquefied natural gas import terminal and the Hanul Nuclear Power Plant in Uljin as it began to spread to the south.
South Korean steel maker with own LNG terminal expects to use hydrogen for steel-making process in 2040
South Korea is planning the use of hydrogen in blast furnaces for steel-making rather than in natural gas pipelines as European and US environmental energy lobbyists are putting forward as a gas replacement.
South Korea to shut oldest coal-fired power plant on December 31 and replace it with facility using LNG
South Korea said the nation’s oldest coal-powered electricity generating plant would be shut down for good on December 31 in line with the government's plan to shift towards cleaner energy.
The Korean Ministry of Trade, Industry and Energy confirmed that the Honam Coal Power Plant located in Yeosu in South Jeolla province, 450 kilometres south of the capital Seoul, was scheduled to stop operations at the end of December.
“The plant has been in operation as a power producer since 1973,” added the Ministry.
The nation's nine other coal-based plants have all been retired since 2017 as their operational life cycles have expired.
“A new gas-fired generating facility using regasified LNG will be built at the Yeosu site,” said the Ministry.
The Hanyang Corporation has been grated permits to convert the city of Yeosu into a hub for LNG.
The approved project will include construction of LNG storage tanks, a jetty and other regasification infrastructure as well as truck-loading bays by 2024.
South Korea is the world’s third-largest LNG importer with access to global supplies.
The country's annual demand for LNG is expected to reach about 48 million tonnes in 2034 compared with 41.7MT estimated for 2021.
South Korea's imports of LNG in 2020 amounted to 40.81MT versus fourth-placed India’s 26.62MT.
The nation’s six large operational import terminals are at Boryyeong, Incheon, Kwangyang, Pyeong-Taek, Samcheok and Tong-Yeong.
The biggest supplier to South Korea is Qatar with just short of 10MT of cargoes and followed by Australia with 8.10MT.
South Korea feels impact of rising costs of LNG imports as government continues power price freeze
South Korea, the world’s third-largest liquefied natural gas importer, is feeling the impact of increasing LNG prices and has just continued a freeze on power prices into the third quarter of 2021.
South Korea fills LNG supply and storage gap as facility is completed on resort island of Jeju
South Korea has completed the construction of a liquefied natural gas storage and distribution facility on the southern resort island of Jeju to help bring security of power supply while reducing emissions.
