South Korea's KOMIPO Cancels LNG Import Terminal Due to High Costs, Declining Demand
(Reuters) — South Korea's Korea Midland Power Co. (KOMIPO) has cancelled plans to build a liquefied natural gas (LNG) import terminal on the western coast of the country due to high costs and declining demand for the fuel.
KOMIPO said in a statement to Reuters on Monday that its board had approved the plan to withdraw from a LNG terminal construction project in Boryeong on June 28. Construction costs for the project had been expected to rise by about 22% from 732.1 billion won ($527.40 million) to 894.6 billion won.
The company also added that it expected its annual LNG demand to reduce by 67% to 384,000 tonnes.
KOMIPO had decided to build the LNG terminal in 2022, and construction was supposed to start last month, according to Yonhap news agency.
South Korea is the world's third largest LNG importer after China and Japan and shipped in 45 million tons of the fuel last year, according to data from analytics firm Kpler.
Analysts expect South Korea's LNG imports to remain steady or decline this year as more usage of nuclear power displaces gas.
($1 = 1,388.1400 won)
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- TC Energy’s North Baja Pipeline Expansion Brings Mexico Closer to LNG Exports
Comments