November 18, 2023 [LNG Prime]- South Korean LNG importer Kogas reported lower gas sales in October compared to the same month last year due to lower demand both for power generation and city gas.

Kogas sold 2.25 million mt last month, a drop of 13.3 percent compared to 2.60 million mt in October last year, according to a stock exchange filing.

October sales rose by 5.3 percent compared to the previous month’s 2.14 million mt, Kogas said.

Purchases by power firms decreased by 17.7 percent year-on-year to 1.13 million mt in October. These purchases decreased by 9.4 percent compared to the previous month.

Moreover, Kogas said its city gas sales decreased by 8.5 percent year-on-year to 1.12 mt, while they rose by 26 percent compared to the month before.

During January-October this year, South Korean LNG imports dropped to 35.46 million mt from 38.12 million mt last year, customs data shows.

South Korea paid $29.8 billion for these LNG imports this year. This compares to $39.6 billion last year, the data shows.

January-September sales drop

Kogas operates 77 LNG storage tanks at five LNG import terminals in South Korea.

The large terminals include Incheon, Pyeongtaek, Tongyeong, and Samcheok, while the firm has a small-scale regasification terminal at the Aewol port on Jeju island as well.

Also, the firm is building a large terminal in Dangjin and expects to launch the first phase in December 2025.

Kogas announced in its quarterly report issued this week that its sales during January-September decreased by 8.6 percent to about 25.2 million mt.

The firm said that its city gas sales declined by 9.7 percent year-on-year.

Kogas said residential demand decreased due to higher average temperature, while industrial demand dropped due to the economic recession.

Also, sales to power firms decreased by 7.5 percent and Kogas said total power generation decreased due to the economic recession.