Asia/Pacific News
South Korean Nuclear Plant Shutdowns Won't Hurt Bunker Supply
South Korean refiners say the supply of fuel oil in the country will be enough to meet demand despite the shutdown of nuclear power plants, which has forced electricity companies to seek other energy sources, Platts reports.
Sources said there is only a limited capacity of oil-fired electrical plants, and they are already operating at full capacity, so power companies are relying more on coal and liquefied natural gas (LNG).
"Even though fuel oil demand increases, refiners will import bunker fuel to meet demand," said another bunker trader.
He said South Korean refiners SK Energy, GS Caltex, and Hyundai Oilbank are already importing bunker fuel cargoes.
South Korea is reported to sell 700,000 to 800,000 metric tonnes of bunker fuel per month, with domestic refineries supplying about 80 percent of that volume.
The nation shut down some of its nuclear reactors in May after a continuing scandal involving forged documents, although the government said the shutdown could lead to an "unprecedented" energy shortage over the summer, Reuters reported.
