South Korea Boosts LNG Imports as Economic Recovery Aids Power Consumption

South Korea, the world’s second- largest buyer of liquefied natural gas, increased imports of the fuel for a sixth month as power generators used more gas amid an economic recovery.

LNG purchases rose 79 percent in July to 2.08 million metric tons from 1.16 million tons a year earlier, according to data posted on the Korean Customs Service’s website today. The nation paid $546.6 a ton, equivalent to about $10.4 per million British thermal units, for the fuel, 45 percent more than a year earlier, the data show. The cost rose from $528.8 a ton in June.

Gas consumption jumped 32 percent to 1.8 million tons in July, state-run Korea Gas Corp. said Aug. 11. Power producers used 58 percent more of the fuel last month as manufacturers used more electricity to increase output. Korea Gas said last month it may sell 31 percent more gas this year as economic recovery is boosting demand for the fuel.

South Korea bought two spot cargoes from the U.S. and Equatorial Guinea for $516.41 a ton in July, compared with one spot cargo purchased at $478.91 a ton a year earlier, the data show.

The nation buys LNG under multiyear contracts from Qatar, Russia, Indonesia, Oman, Malaysia, Australia, Brunei and Yemen, as well as individual cargoes in the spot market.

Coal imports for power generation climbed 13 percent from a year earlier to 8.17 million tons, customs data released today show. The cost of importing coal rose 6 percent last month to $85.94 a ton.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net

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