Kogas to invest in resource development, plans new LNG carriers order

South Korea’s Kogas, the world’s second-largest buyer of LNG, it is looking to place orders for two liquefied gas carriers as well as to invest in overseas resource development. 

Kogas CEO, Lee Seung-hoon told Yonhap News Agency that the with the drop in demand, the LNG trade has become a buyer’s market. As such suppliers are providing investment opportunities and the CEO believes that this is the right time to invest in resource development.

The company could cut down on costs of procuring LNG through its own production, said Lee Seung-hoon, adding that Kogas has to move away from the long-term supply contracts that come at a high-price.

Speaking of the LNG carrier order, Lee Seung-hoon said that the company is looking to advance its schedule of placing orders for liquefied natural gas carriers to the first half of next year. The order for new carriers could be placed with the local shipyards.

He noted that with the falling demand, the appetite for new LNG carriers has also declined.

Kogas is considering the option of assigning maintenance work for its LNG carriers to local shipbuilders that have been hit with a steep drop in new orders.

LNG World News Staff