LNG

Kansai Electric, better known as KEPCO, is planning to renew Himeji No.1 Power Station in western Japan with high-efficiency combined cycle units to increase output and lower emission.  Himeji No.1 is an LNG-fuelled plant that has been in operation for over 30 years, and the repowering is meant to raise output from 1,442 MW to 1,950 MW and thermal efficiency from 54% to about 63%. Start of commercial operation is planned for fiscal 2033.

South Korea’s ruling Democratic Party today announced the abolition of spring caps limiting coal-fired plants to 80% capacity, alongside boosting nuclear utilization to over 80% from late-60s levels. “We aim to lift coal power caps to ease reliance on LNG for electricity generation,” an official from the Ministry of Trade, Industry and Resources said, pointing at government strategy to stabilize baseload power.

Fitch Rating reckons utilities in Asia Pacific can only a absorb a “short-lived fuel-supply disruption” linked to the Iran conflict. KEPCO and KOGAS rely heavily on imported LNG, so sustained shortages persist will weigh heavy on utilities balance sheets, analysts warn.

The largest South Korean power and natural gas companies with liquefied natural gas commitments including imports and purchases have seen their current debts staying at high levels because of last year’s higher commodity prices and increasing interest rates.

South Korea, the third-largest Asian liquefied natural gas importer, has announced increases in electricity and gas prices to offset the cost of power generation from imports like LNG.

Japan Bank for International Cooperation (JBIC) has signed loan agreements underwriting project financing amounting to over US$2.3 billion for a power interconnector between  UK and German LNG import locations to also help guarantee against any future natural gas and LNG shortages.

Kansei Electric Power (Kepco), a leading Japanese LNG importer, has won a court victory to keep open a nuclear plant that some local residents wanted to shut down because of its age in a ruling that may impact future LNG demand in Japan.

Korea Electric Power Corp., the state-run utility, said it planned to import more coal this winter because of the price differential between coal and liquefied national gas shipments in terms of generation compared with cost where there was a 40 percent saving.

Sept 30 (LNG) - South Korea said it would raise domestic natural gas prices for civilian users in October because of soaring LNG import prices. The Ministry of Trade, Industry and Energy said natural gas prices for households would increase by 15.9 percent and the price rises for commercial users would range from 16.4 percent and 17.4 percent.

   Korea Electric Power Corp. (KEPCO) said it would also raise fourth-quarter electricity rates for households and industrial users because of high costs and the company’s increasing losses. KEPCO said it had decided to raise the adjusted unit fuel cost by 2.5 Korean won (US$0.002) per kilowatt hour for the October-December period. The increase is in addition to a 4.9-won rise the government has already decided to apply for electricity from October.

Hyundai Motor Co., the leading South Korean car maker, has formally ended plans to build a gas-fired power plant at its Ulsan facility that would have used regasified LNG imports.