SEOUL, Nov 29 (Reuters) - South Korea’s Korea Gas Corp (KOGAS) has found difficulties in procuring spot cargoes of liquefied natural gas (LNG) due to high prices, the head of the world’s largest corporate buyer of LNG said on Friday.
The state-run gas company is also considering lowering the proportion of its LNG imports that it buys on the spot market, Jang Seok-hyo, President & CEO of KOGAS told Reuters on the sidelines of a South Korea and Canada gas forum.
“It is not easy to get spot cargoes for power generation. It is hard. Prices are problematic,” Jang said.
Asia’s fourth largest economy faces severe power shortages again this winter due to cuts in nuclear power use after a corruption scandal that started in late 2012.
The cuts in use of the country’s nuclear-fired capacity is expected to boost its demand for other fuels such as LNG and coal for power generation.
LNG spot prices in Asia are running at about $18.70 per mmBTU, their highest since mid-February LNG-AS.
Editing by Tom Hogue