Korea Midland Power(KOMIPO) has decided to cancel its project to build an LNG import terminal on the country’s west coast. This decision was made in response to high construction costs and declining demand for the fuel.
KOMIPO withdraws plans to increase LNG imports
KOMIPO reported that its board of directors had approved the cancellation of the Boryeong LNG terminal construction project on June 28. The company mentioned that construction costs were expected to increase by approximately 22% from 732.1 billion won(US$527.40 million) to 894.6 billion won.
On the other hand, the company noted that it anticipated a reduction in its annual LNG demand, which would fall by 67% to 384,000 tons. This decrease in demand was an important factor in the decision to cancel the project.
The original plan for the construction of the LNG terminal was set for 2022, with the expectation that construction would begin in June of this year. However, changes in the market and costs made it unfeasible to continue with the energy project.
The country of South Korea ranks as the world’s third largest LNG importer, after China and Japan, having imported 45 million tons of the fuel last year, according to data from analyst firm Kpler. However, analysts predict that LNG imports into South Korea will remain stable or even decline this year due to the growing use of nuclear power, which is displacingwhich is displacing gas as the main source of energy.
Follow us on social networks and don’t miss any of our publications!
YouTube LinkedIn Facebook Instagram X
Source: Marine Link
Photo: Shutterstock
Loading...
