Korea to cut LNG supply

Korea to cut LNG supply

DUBAI (DOW JONES): State-owned Korea Gas Corp. is trying to
cut back on its 1999 liquefied natural gas import commitments and
has contacted at least four of its suppliers to reduce the number
of cargoes scheduled under annual delivery programs, the weekly
Middle East Economic Survey said Monday.

Kogas is holding talks with suppliers in Indonesia, Malaysia,
Brunei and Qatar to try to reduce its lifting obligations by 15
cargoes - 10 from Indonesia, three from Malaysia and one each
from Brunei and Qatar, MEES said. But it emphasized that talks
are ongoing, and nothing concrete has been decided.

Low offtakes by state-owned Korea Electric Power Corp., or
Kepco, are behind the move, MEES said. Kepco had originally
agreed to buy 5.23 million metric tons of LNG from Kogas in 1999
and planned to consume 2.19 million tons of that amount by the
end of May, MEES said. Instead, it only burned 1.64 million tons
in the period.