South Korean Firms Issue Tender for LNG Cargo Delivery in June
South Korean firms Korea Midland Power Co (KOMIPO), Korea Southern Power Co (KOSPO), and SK subsidiary PRISM Energy International have jointly issued a tender for the delivery of one liquefied natural gas (LNG) cargo in June.
The tender, led by KOMIPO, specifies the requirement for 3-3.6 trillion British thermal units (Btu) of LNG on a JKM-linked and delivered ex-ship (DES) basis. The cargo is scheduled for delivery on either June 12 or June 23 to one of the Kogas-operated terminals in Korea, including Incheon, Pyeongtaek, Tongyeong, and Samcheok.
The JKM, known as the Japan-Korea-Marker, serves as the benchmark price assessment for spot physical LNG cargoes in Asia. KOMIPO and PRISM Energy International are expected to receive 950,000 million British thermal units (mmBtu) and 720,000 mmBtu of gas, respectively, with the remaining volume allocated to KOSPO.
The tender is set to close on May 7, providing interested parties with a limited timeframe to submit their offers for consideration.
This collaborative effort among prominent South Korean energy companies underscores the ongoing demand for LNG in the region and highlights the strategic importance of securing reliable and cost-effective energy sources for power generation and industrial applications.
As the deadline approaches, industry observers anticipate competitive bidding and strategic negotiations to determine the final supplier of the LNG cargo, with implications for market dynamics and pricing trends in the Asian LNG sector.
For further updates on this tender and other developments in the LNG market, stay tuned for additional insights and analysis from industry experts.
(Source: Reuters)