South Korean LNG importing giant Kogas reported a slight drop in its April gas sales following a rise of 12.1 percent in the month before.
Kogas sold 2.71 million mt last month, down 2 percent when compared to about 2.77 million mt the firm had sold in April 2021, according to a stock exchange filing.
April sales decreased by 29.7 percent when compared to the previous month’s 3.86 million mt when higher demand in the power generation sector boosted the company’s sales.
Purchases by power firms dropped by 7.9 percent year-on-year to 1.30 million mt in April. These purchases declined by 28.1 percent when compared to the previous month.
Furthermore, Kogas said its sales to retail gas companies for households and businesses rose by 4.2 percent year-on-year to 1.41 million mt, while they dropped by 31.2 percent compared to the month before.
Kogas currently operates four large LNG terminals. These include Incheon, Pyeongtaek, Tongyeong, and Samcheok, but the firm has a small-scale regasification terminal at the Aewol port on Jeju island as well.
On top of these facilities, the LNG importer is building a large terminal in Dangjin.
Kogas imports LNG from plants located around the globe and it recently signed a deal with BP to buy US LNG for a period of 18 years.
Under the Henry Hub-linked sale and purchase deal, BP Singapore, a unit of BP, will deliver 1.58 million tonnes of LNG per year to Kogas starting in 2025.
Kogas said this marked the first long-term supply contract between the two firms and the import volume covers about 3 percent of South Korea’s annual LNG consumption.
