U.S. LNG fills Qatar gap as South Korea shifts imports and boosts profits
As exports of Qatar’s liquefied natural gas (LNG) were blocked by the war between the United States and Iran, the United States is increasing LNG exports. For corporations that import LNG directly without going through Korea Gas Corporation (KOGAS), profits grow as imports of lower-priced U.S. LNG increase compared with Qatari supplies. In particular, private ...
The United States is boosting its liquefied natural gas (LNG) exports amid a blockade on Qatar's LNG supplies due to the U.S.-Iran war. Private power producers importing LNG directly are projected to gain profits as they save on fuel costs while selling electricity at high prices. QatarEnergy, Qatar's LNG supplier, is reportedly considering yearly imports of 2-3 million tons of U.S. LNG to fill the gap.
This move follows the destruction of Qatar's LNG production facilities, which has caused a 96% drop in exports to Asia. U.S. LNG is cheaper than Qatari LNG, making it an attractive option for importers. Direct importers of LNG for power generation in Korea, such as Korea Gas Corporation (KOGAS) subsidiaries, SK E&S, SK Gas, GS EPS, GS Power, POSCO International, and Korea Midland, Western and Southern Power, stand to benefit from the cheaper U.S. LNG.
International LNG prices have surged since the conflict, with spot prices reaching the mid-$1,326 per ton in March 2024, up from around $572 per ton in August 2023.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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