Posted - May 28, 2013 8:22 AM ET - By Isaac Arnsdorf - Bloomberg.com
The closing of nuclear reactors in
South Korea may drive up demand for liquefied natural gas
cargoes as a replacement fuel and boost shipping costs going
into the country’s summer.
Two reactors will be halted for about four months and
startup of a third will be delayed because components at the
facilities had faked safety certificates, the Energy Ministry
said today. The world’s second-largest LNG importing nation will
need one additional gas cargo a month to replace 50 percent of
the energy from the halted plants, according to Erik Nikolai
Stavseth, an Oslo-based analyst at Arctic Securities ASA.
“Higher consumption can lead to more LNG spot imports, in
our view, potentially generating additional ton-miles and hence
higher rates for LNG carriers,” Oyvind Berle, an Oslo-based
analyst at DNB Markets, said in an e-mail, referring to shipping
demand measured in volumes and distances. The extra demand may
be constrained by capacity at gas-fired power plants, he said.
Post to be found at:
http://www.bloomberg.com/news/2013-05-28/south-korea-nuclear-shutdowns-seen-boosting-summer-lng-imports.html
No comments:
Post a Comment