LNG: South Korea Could Boost LNG Imports from the US in Tariff Bargain
May-01 12:52
South Korea could look to boost US LNG buying as a bargain against tariffs, Platts said.
- The US has proposed a 25% import tariff on South Korean goods to reduce the trade deficit.
- Negotiations on the tariff include South Korea’s imports of US LNG and participation in the Alaska LNG project.
- The country's supply-demand gap widened in 2024 as legacy contracts expired, increasing spot purchases, 72% of which came from US projects. The gap is forecast to grow further in 2025.
- US LNG availability is set to rise with new projects in 2025–2026, while European demand for US cargoes diminishes.
- If South Korea fills its supply-demand gap entirely with US LNG, this will lead to imports of 40 mcm/d of spot cargoes from the US, up from the 11 mcm/d in 2024, significantly reducing tariffs, though other supply sources will likely play a role.
- Additionally, China’s cargo swaps may create opportunities for Northeast Asia’s LNG market.
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