South Korean LNG Appetite Thins Out, Prices Remain Under Pressure

Gas demand in South Korea is anticipated to remain depressed in the coming years as the country goes through structural changes in its power sector. LNG imports for 2015 fell by 3.2mn tons (almost 9%) to 33.37mn tons, the lowest level since 2010, mainly because of increased nuclear power capacity and relatively mild winter weather (see graph and table, p11).

South Korea is the world’s second largest LNG importer. With demand also weak in number one importer Japan, supply buoyant with new Australian and North American projects coming onstream and prices following 12-year low crude prices downwards, all the signs are bearish for LNG in 2016.


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