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New taxes in South Korea will benefit gas and hit coal

South Korea is lowering taxes for LNG and raising them for coal, a move that will benefit gas consumption South Korea is lowering taxes for LNG and raising them for coal, a move that will benefit gas consumption.
By Catriona Scott 25 March 2019 Asia Pacific / Supply & Demand 0 34068
South Korea's Pyeongtaek LNG terminal. (Kogas)

Directional impact on forecast:
Bullish for South Korean LNG imports

South Korea is introducing new taxes that will increase the cost of coal and reduce the cost of gas and LNG in the power sector. However, the benefits of the tax changes will be mitigated by increased nuclear generation, which is expected to be higher in Q2 2019 than it was in Q2 2018. This will limit the use of thermal generation in the power sector over the coming months.

The government is lowering...