* Cancelled volume is equivalent to 0.3 pct of consumption
* S.Korea LNG inventory at over 80 pct of storage capacity
* No supply crunch seen due to LNG cargo cancellation
* Seoul already faces power shortage due to reactors
(Adds details and quotes)
By Meeyoung Cho
SEOUL, Nov 14 South Korea has lost two December
liquefied natural gas (LNG)shipments from Indonesia after a fire
at a terminal there, its economy ministry said on Wednesday.
December shipments of two spot liquefied natural gas (LNG)
cargoes with a combined volume of 120,000 tonnes were cancelled
due to the shutdown of Indonesia's Tangguh LNG train 2 caused by
the brief fire earlier this month.
The cancelled volume was equivalent to 0.3 percent of South
Korea's natural gas consumption at 35.41 million tonnes of LNG
equivalent, the ministry said in a statement.
LNG inventory in the world's second-largest importer after
Japan remains at more than 80 percent of its storage capacity,
helping to avoid any supply squeeze, the statement added.
Asia's fourth-largest economy already struggles to ensure
power supply this winter after two nuclear reactors have been
closed to replace parts that were supplied with fake documents,
and shutdown of another reactor also has extended due to
"The economy ministry will continue to monitor supply and
demand of natural gas closely, and if necessary it will secure
alternative suppliers to ensure the gas supplies," the ministry
It added POSCO and SK E&S were expected to
receive their December LNG cargoes under term contracts with
Tangguh by the end of this year without disruption.
Indonesia's Tangguh LNG train 2 was shut during scheduled
maintenance on the field's Train 1 and may not resume operations
for up to two months, Indonesia's oil and gas regulator BPMigas
said on November 10.
During the restart process for Train 1 on November 6, an
overheating problem was found that caused a fire in the Train 2
refrigerant unit, forcing Train 2 to be shut down, BPMigas had
The Tangguh gas field in West Papua province is managed by a
consortium of companies led by BP and CNOOC Ltd.
, China's top offshore oil and gas producer, as well as
Korea Gas Corp (KOGAS), the world's top
corporate buyer of LNG, said last month it would buy more gas on
the spot market to meet winter demand and put its stocks at 3.37
million tonnes as of end-September, or 86 percent of storage
(Reporting by Meeyoung Cho; editing by William Hardy)