South Korea: gas rates cut on declining LNG import costs

South Korean ministry of trade, industry and energy (MOTIE) on Wednesday revealed retail natural gas rates will be cut by an average of 9.5 percent starting March 1. 

The reduction comes about as costs of liquefied natural gas imports have dropped recently, and, city gas rates could be further reduced should LNG import costs continue falling, Platts reports.

South Korea already cut the gas rates by 9 percent in January this year, however, it had no effect on country’s LNG demand that keeps dropping, despite a slight rise in Kogas’ sales during the month of January.

The state-run company saw the first increase of LNG sales in five months since August, rising 3.5 percent 4.17 million mt, compared to the same month in 2015.

In total, Kogas, 2015 LNG sales reached 31.46 million mt dropping 10.6 percent compared to 2014.

LNG World News Staff