November 29, 2022 08:50 GMT
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.