LNG is unloaded via pipes from tanker Al Kharsaah docked at the Korea Gas Corp LNG terminal in Pyeongtaek. South Korea paid $2.47bn for LNG in November, compared with $2.01bn in the same month last year, the data show.

Bloomberg

Seoul

South Korea, the world’s second-largest buyer of liquefied natural gas, boosted imports of the fuel by 9.7% in November amid increased demand for power generation.

Shipments climbed to 3.28mn metric tonnes from 2.99mn a year earlier, according to data on the Korea Customs Service’s website yesterday. Imports advanced 2.8% from October.

Domestic sales by state-run Korea Gas Corp, the company that buys the most LNG globally, were up 3.3% in November from a year earlier, according to a regulatory filing on December 11. Demand from electricity producers rose by 9.4%, while local city-gas providers used 1.9% less of the fuel.

South Korea imports most of its LNG under long-term contracts with suppliers including Qatar, Indonesia, Malaysia and Oman. It was the largest buyer after Japan in 2012 with purchases of 36.77mn metric tonnes, according to the industry-funded International Group of Liquefied Natural Gas Importers in Paris.

South Korea paid $2.47bn for LNG in November, compared with $2.01bn in the same month last year, the data show. The average price rose to $754.47 per tonne, from $672.80. That’s equivalent to $14.51 per million British thermal units, compared with $12.94 the year before, according to Bloomberg calculations based on the customs data.

The most expensive supply was from Oman, at an average $16.84 per million Btu for 370,244 tons. Russia delivered four cargoes at $6.97 per million Btu, the lowest paid in November.

Asian buyers typically import more spot LNG in October and November to replenish inventories before heating and power demand peaks during winter in the northern hemisphere.

South Korea purchased four spot shipments in November, according to the data. Angola supplied its first ever cargo of 64,974 tonnes to Kogas while Nigeria, Africa’s largest natural gas exporter, sent 188,226 tonnes. A standard LNG tanker can carry about 60,000 tonnes.

The Sonangol Benguela delivered Angola LNG’s gas to South Korea November 8, according to ship transmissions captured by IHS Fairplay on Bloomberg. The shipment is the fourth cargo produced by the Chevron Corp-led Angola LNG project, which started in June.

The Nigerian cargoes were delivered by the LNG Kano, which was diverted from its original destination of Mexico, the Clean Force and the Seri Begawan on November 20, November 13 and November 25 respectively, shipping data show.