South Korean LNG demand to slow over next two years

South Korea’s liquefied natural gas (LNG) demand is set to slow over the next two years despite a number of coal plant closures, the boss of power company SK E&S said.

Source: EWA

Chief Executive Jeong Joon Yu expects at least 10 coal plants to be shut down by spring but the drop in coal power production to be offset by weaker electricity demand and new nuclear output, he said on the sidelines of the CWC World LNG Summit in Rome.

“Introduction of new nuclear production and the reduction of demand in the power sector is offsetting coal plant closures,” he said, adding that domestic electricity demand fell by 1.5% in South Korea this year.

“So net impact may be not that great for LNG in the next two years,” he said.

The presidential committee recommended in September shutting up to 14 coal plants between December and February and up to 27 in March, scaling up South Korea’s anti-pollution measures.

Yu said that power plant closures are at the discretion of local governments, which will make decisions depending on air pollution levels in their particular regions. (Reporting by Ekaterina Kravtsova Editing by David Goodman)