1. Most Discussed
  2. Gainers & Losers

GLOBAL LNG-South Korean coal plant closures may lift LNG demand

Bookmark and Share
  1. Asian spot LNG prices held steady this week with little fresh activity, but fresh demand is expected after South Korea outlined plans to close ten old coal-fired power plants next month.

    Spot prices for July delivery were assessed at around $5.50 per million British thermal units (mmBtu), broadly in line with last week's levels, according to trade sources.

    A month-long shutdown at Train 1 of Chevron's giant Gorgon export plant in Australia, announced on Monday, had little impact amid weak shoulder-month demand in Asia.

    News of South Korean coal plant closures, however, could help support prices if Korea Gas Corp launched another tender for summer supplies, trading sources said.

    The company - via its last tender in April - purchased around 10 cargoes for June and July delivery, temporarily helping to shore up a weak market.

    "The Koreans seem more active with coal power plants shutting down," a Singapore-based trader said.

    Angola launched a tender to sell a cargo loading on May 21-23, while South Korea's POSCO seeks a cargo for delivery in late June.

    Italy's OLT import terminal will receive three June cargoes from Swiss-based DufEnergy Trading, as well as a cargo each from MET International and Eni ENI.MI in July, trade sources said.

    Deliveries to OLT, moored off the Tuscan coast, were purchased via an auction in which nine companies participated to secure the five import slots on offer across June and July.

Before making any financial decisions based on what you read, always consult an advisor or expert.

The aim of HotCopper News is to report and comment on news in the financial and investment markets. HotCopper provides no advice on dealing in securities and is not a financial advisor. Professional advice should be sought before making any investment decisions.

Contact editor: [email protected]

To read reuters' full disclaimer click here

Thank you for visiting HotCopper

We have detected that you are running ad blocking software.

HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.