MILAN Aug 26 Korea Gas Corp. has
approached long-term suppliers of liquefied natural gas (LNG) to
defer up to 10 autumn cargoes to winter, showing it is lumbered
with excess supply and pulling out of spot markets, industry
High stocks and weak demand prompted state-run Kogas, the
world's biggest corporate buyer of LNG, to offload a number of
cargoes this summer through a combination of time-swap deals and
by deferring deliveries from suppliers.
Deferrals were first meant to include only summer cargoes,
but the programme has been extended to include an additional
five to 10 cargoes in later delivery periods, traders said.
In total, Kogas is due to defer or swap out a total of 40
LNG cargoes between May and November this year, a source with
direct knowledge of the matter told Reuters.
Kogas has asked to defer cargoes due to be delivered in
early November as well as other periods, the source said.
As a result of the deferment, suppliers such as Malaysia's
Bintulu export plant, Indonesia's Bontang, Russia's Sakhalin and
Qatar's Rasgas have pumped more supply into the open market, the
The latest deferments mean they may continue to add to
global spot supply for a while longer.
Traders do not expect Kogas to resume buying spot cargoes
this winter, barring abnormally cold weather, which is not
currently forecast for Korea and Japan, the world's biggest LNG
(Reporting by Oleg Vukmanovic; editing by Jane Baird)