Free Trial

South Korea Could Resell, Divert LNG This Winter Amid Tank-Top


South Korea’s concerns over LNG supply overhang are increasing amid ample stocks at terminals and forecasts for milder weather in January and February, industry sources told Platts.

  • The Korean Meteorological Agency has predicted a warmer winter in Jan-Feb, compared to its earlier forecast of colder weather in Dec on account of the La Nina effect.
  • Milder weather could exacerbate the ongoing tank-top situation.
  • Kogas was heard facing high inventory levels at its major terminals in Incheon and Pyeongtaek.
  • "The company asked for deferments, and some suppliers agreed," a source at one of the producers said.
  • Market participants expect the state-run gas utility Kogas to resell prompt spot volumes of gas amid the ongoing 'tank-top' situations.
  • "China used to be the 'last resort for most Asian LNG importers who tend to overly-purchase the winter LNG volumes ahead of the winter season. However, the situation this year looks more severe than in previous years", sourced added.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.