Korea Electric Power and Korea Gas still carrying high debt levels though falling LNG prices brings some relief
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.
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.
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 Koreans to cut LNG use this winter and use more coal because of 40 percent saving in generation costs
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.
Korean steelmaker and LNG importer POSCO works on recovery after typhoon hits Gwanyang terminal area
South Korean steelmaker and LNG importer POSCO has been engaged in damage restoration work after a typhoon and was planning to re-start the Pohang steel complex as the gas-fired power plant using regasified LNG is returned to normal capacity.
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 Korean LNG imports fall as nation heads for annual drop to the 40 million tonnes level
South Korea, the third-largest LNG importer, posted a 15 percent decline in liquefied natural gas shipments last month even at seasonally low prices, with Australia and Malaysia as the leading suppliers.
Korea Gas Corp. to invest in LNG bunkering and backs Daewoo Tata plan for gas-fueled truck
Korea Gas Corp., the Asian nation’s main utility and liquefied natural importer, said it would invest 1 trillion won (US$895 million) through 2025 to establish infrastructure for LNG-powered vessels and trucks.
South Korean power operators say coal is losing its huge cost advantage over LNG in Asia
South Korean power operators have seen the cost of coal-fired power increase to narrow its differential with liquefied natural gas and because of its environmental burden, thermal coal can no longer be regarded as a cheap option in Asia.
South Korea may require more LNG as nuclear plants also restarted amid power concerns
South Korea, the world’s third-largest liquefied natural gas importer, has suspended plans to end nuclear power generation as a summer heatwave has exposed security of supply issues and five nuclear plants are being brought back on line to support LNG and coal-fired electricity generation during the peak demand period of August.
