South Korea's KOMIPO Cancels Plans for LNG Import Terminal

Monday, July 22, 2024

South Korea's Korea Midland Power (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 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)


(Reuters - Reporting by Ju-min Park in Seoul, writing by Emily Chow in Singapore, Editing by Louise Heavens)

Categories: Offshore LNG Industry News Activity Asia Oil and Gas

Related Stories

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

EnerMech Names APAC Regional Chief

Woodside Inks Long-Term LNG Supply Deal with China Resources

Marine Masters Secures Wellhead Platforms Installation Job Off India

Japan's Mitsui Eyes Alaska LNG Project

Petronas Greenlights Hidayah Field Development Off Indonesia

Shell Shuts Down Oil Processing Unit in Singapore Due to Suspected Leak

China’s CNOOC Brings Bohai Sea Oil Field On Stream

ABS Approves Hanwha Ocean’s FPSO Design

Current News

Mitigate SCC & HE to Keep Offshore Metal Structures Ship Shape

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Pakistan’s OGDC to Start Production at ADNOC’s Offshore Block by 2027

Petrovietnam, Petronas Extend PSC for Offshore Block

Sapura Energy Scoops Close to $9M for O&M Work off Malaysia

Hanwha Ocean Marks Entry into Deepwater Drilling Market with First Drillship

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com