South Korea's Posco tenders to buy late-September LNG cargo

Chemical News: South Korea's Posco tenders to buy late-September LNG cargo

https://www.chemnet.com Aug 04,2010
South Korea's largest steelmaker Posco has tendered to buy a spot LNG
cargo for delivery in late September to its Gwangyang LNG import terminal,
several market sources said Tuesday.

Posco is building a third storage tank, with a capacity of 165,000 cubic
meters, at Gwangyang, on the south-central coast of the country.

The tank is expected to be completed by September. A source said the
company is likely seeking a spot cargo to commission the tank.

The terminal already has two LNG tanks, each with a capacity of 100,000
cu m. It can store and supply up to 1.7 million mt/year of LNG.

Currently, Posco has a single long-term contract to import 550,000
mt/year of LNG from Indonesia's Tangguh LNG project. Independent power
producer K Power has capacity rights for 600,000-800,000 mt/year at the
terminal, and also has a long-term contract with Tangguh.

The terminal has received spot cargoes in the past, though they were
linked to delays in the start-up of the Tangguh project.

Sources said Tuesday that Posco was targeting a delivered price around
$7.50/MMBtu. A seller said a price around mid $8s/MMBtu would be "more
reasonable."

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