Page 25 - Oil&Gas-AustralAsia-2015-Issue-1
P. 25
K OREA
South Koreas Bio-Diesel Dismal outlook for
LNG in S Korea’s
mixing rate to increase to 2.5% power market as
coal, nuclear gain
From July 31 in 2015, the blend rate The mixing ratio of bio-diesel in auto- favour
of the bio-diesel will increases by 0.5 motive diesel increases from 2 per-
percent point in automotive diesel. cent to 2.5 percent. And the ratio will South Korea’s LNG demand for power
The Ministry of Trade, Industry & increase to 3 percent from 2018 until generation is expected to continue fall-
Energy announced that pre-announce- 2020. ing as power plants turn to cheaper fuel
ment of legislation (New energy & The Minister of Trade, Industry & Ener- like coal and the government pushes
renewable energy use and dissemina- gy said “The mixing ratio of bio-diesel its pro-nuclear policies, head of state-
tion Promotion Act Enforcement Rules should be re-examined.” And he said run power distributor Korea Power
and amendments) was noticed and “The review period can be shorten by Exchange said Friday, March 20.
“Renewable Fuel Standard (RFS)” will considering implementation of the “LNG demand for electricity genera-
be enforced from July in 2015. mixing and domestic or global market tion would be further decrease because
conditions.” § more and more gas-fired power plants
are staying idle due to high prices of
Government and LNG compared with coal and nuclear,”
Petrochemical Industry Yoo Sang-Hee, chairman and CEO of
discuss close cooperation KPX, said.
Operating rates of gas-fired plants have
At a recent meeting of the petrochem- competition over last year. dropped to 50.8% in 2014, from 61.3%
ical industry CEO’s , both the Ministry The industry expressed concerns that in 2013 and 64.7% in 2012, Yoo said.
of Trade, Industry and the petrochemi- national environmental regulations “This means that half the gas-fired
cal industry have announced a bilateral such as emissions trading seem to add plants were shut last year.”
cooperation. extra cost burden. “The rates are expected to further slip
The ministry urged petrochemical com- So, they asked the government to to 44.8% this year, 33.9% next year,
panies to upgrade the industry through support infrastructure expansion for 23.7% in 2019 and as low as 16.8% in
improving production efficiency and advancing petrochemical industrial 2022,” Yoo said.
manufacturing process with helping complex and respond actively against Yoo attributed the lower rates to South
small and medium-sized enterprises for antidumping actions from rising na- Korea aggressively trying to minimize
mutual growth. tions. fuel costs.
Both the ministry and the industry ex- In this regard, the minister Yoon Sang- Under the country’s current power
pected its cost competitiveness will be jik evaluated last year’s exports came to policy, coal-fired power plants and nu-
recovered due to reduced raw material nearly $483 billion under the difficult clear reactors run by state power utility
(naphtha) prices as well as oil prices. situation such as China’s economic Korea Electric Power Corp. provide
In addition, there is a growing demand slowdown. electricity as “base-load generators.”
aided by recovered domestic down- So, he promised governmental supports When power demand grows, KPX rais-
stream industry and expanded produc- such as a special act supporting rapid es its power purchases from state-run
tion capacity. business restructuring and ways to and private generators that use more
While, they expected the reduced reduce raw material costs. § expensive fuel like LNG and oil.
exports to China will drive the cost But electricity reserves have been on
the rise in recent years as many nuclear
reactors that had been shut for irreg-
ularities restarted after safety checks,
while the country’s power demand
remained sluggish due to a slowing
economy. §
A Awww.oilandgasaustralasia.com MARCH/APRIL 2015 OIL & GAS ustral SIA 23
South Koreas Bio-Diesel Dismal outlook for
LNG in S Korea’s
mixing rate to increase to 2.5% power market as
coal, nuclear gain
From July 31 in 2015, the blend rate The mixing ratio of bio-diesel in auto- favour
of the bio-diesel will increases by 0.5 motive diesel increases from 2 per-
percent point in automotive diesel. cent to 2.5 percent. And the ratio will South Korea’s LNG demand for power
The Ministry of Trade, Industry & increase to 3 percent from 2018 until generation is expected to continue fall-
Energy announced that pre-announce- 2020. ing as power plants turn to cheaper fuel
ment of legislation (New energy & The Minister of Trade, Industry & Ener- like coal and the government pushes
renewable energy use and dissemina- gy said “The mixing ratio of bio-diesel its pro-nuclear policies, head of state-
tion Promotion Act Enforcement Rules should be re-examined.” And he said run power distributor Korea Power
and amendments) was noticed and “The review period can be shorten by Exchange said Friday, March 20.
“Renewable Fuel Standard (RFS)” will considering implementation of the “LNG demand for electricity genera-
be enforced from July in 2015. mixing and domestic or global market tion would be further decrease because
conditions.” § more and more gas-fired power plants
are staying idle due to high prices of
Government and LNG compared with coal and nuclear,”
Petrochemical Industry Yoo Sang-Hee, chairman and CEO of
discuss close cooperation KPX, said.
Operating rates of gas-fired plants have
At a recent meeting of the petrochem- competition over last year. dropped to 50.8% in 2014, from 61.3%
ical industry CEO’s , both the Ministry The industry expressed concerns that in 2013 and 64.7% in 2012, Yoo said.
of Trade, Industry and the petrochemi- national environmental regulations “This means that half the gas-fired
cal industry have announced a bilateral such as emissions trading seem to add plants were shut last year.”
cooperation. extra cost burden. “The rates are expected to further slip
The ministry urged petrochemical com- So, they asked the government to to 44.8% this year, 33.9% next year,
panies to upgrade the industry through support infrastructure expansion for 23.7% in 2019 and as low as 16.8% in
improving production efficiency and advancing petrochemical industrial 2022,” Yoo said.
manufacturing process with helping complex and respond actively against Yoo attributed the lower rates to South
small and medium-sized enterprises for antidumping actions from rising na- Korea aggressively trying to minimize
mutual growth. tions. fuel costs.
Both the ministry and the industry ex- In this regard, the minister Yoon Sang- Under the country’s current power
pected its cost competitiveness will be jik evaluated last year’s exports came to policy, coal-fired power plants and nu-
recovered due to reduced raw material nearly $483 billion under the difficult clear reactors run by state power utility
(naphtha) prices as well as oil prices. situation such as China’s economic Korea Electric Power Corp. provide
In addition, there is a growing demand slowdown. electricity as “base-load generators.”
aided by recovered domestic down- So, he promised governmental supports When power demand grows, KPX rais-
stream industry and expanded produc- such as a special act supporting rapid es its power purchases from state-run
tion capacity. business restructuring and ways to and private generators that use more
While, they expected the reduced reduce raw material costs. § expensive fuel like LNG and oil.
exports to China will drive the cost But electricity reserves have been on
the rise in recent years as many nuclear
reactors that had been shut for irreg-
ularities restarted after safety checks,
while the country’s power demand
remained sluggish due to a slowing
economy. §
A Awww.oilandgasaustralasia.com MARCH/APRIL 2015 OIL & GAS ustral SIA 23
