Korea cancels gas deliveries

Korea cancels gas deliveries

SINGAPORE (Reuters): South Korea has canceled more than 700,000 tons of liquefied natural gas (LNG) deliveries for 1998 because of falling demand, a senior Petronas official said yesterday.

Muri Muhamad, vice president of gas business at Petronas, told an oil and gas conference in Kuala Lumpur that South Korea's state gas company KOGAS has cancelled 15 cargoes for 1998 -- totaling 600,000 tons -- from Indonesia and three cargoes -- totaling 170,000 tons -- from Malaysia LNG.

He said electricity consumption was expected to decline in 1998 because of the country's economic decline.

In addition, Taiwan's Chinese Petroleum Corp (CPC) has cancelled two cargoes totaling 118,000 tonnes from Malaysia LNG, Mohamad said.