South Korea to cut LNG taxes by 74% in April, raise thermal coal tax by 27%
S & P Global Platts, February 1, 2019
South Korea has decided to lower taxes on LNG by as much as 74%, while raising taxes on thermal coal by 27%, from April this year as part of efforts to reduce the country’s heavy reliance on coal in power generation, government officials said Friday. “The government approved the tax rate revision so as to reduce consumption of coal blamed worsening air pollution,” a senior official at the Ministry of Trade, Industry and Energy said. Under the measure, taxes on LNG that include consumption tax and import tax will be lowered to Won 23 ($0.02) per kilograms from Won 91.4/kg currently, he said. “Furthermore, import tax will be refunded for LNG used for combined heat and power,” he said.
Our Take: If you reduce taxes you get more LNG, if you increase taxes you get less coal – pretty basic economics.
Analysis: Qatar’s giant LNG fleet expansion to shape market in coming decade
S & P Global Platts, February 1, 2019
Qatar’s plan to double its LNG carrier fleet by 60 vessels will be one of the largest fleet expansions the industry will witness to date and will be critical to the evolution of LNG trade flows and market dynamics in the next decade. Qatar, the world’s largest LNG exporter, already operates the largest LNG fleet through its shipping subsidiary Nakilat, which has pushed economies of scale with its Q-Flex and Q-Max vessels, the largest LNG carriers in operation.
Related:
Exclusive: Qatar, Exxon to proceed with $10 billion Texas LNG project
From the Washington Examiner, Daily on Energy:
BP AGREES TO DISCLOSE HOW ITS ACTIONS HELP MEET PARIS CLIMATE GOALS: Facing pressure from investors, British oil and gas giant BP agreed Friday to a shareholder resolution forcing it to disclose how its actions help meet the goals of the Paris climate change agreement.
The resolution, put forth by an investor network called Climate Action 100+, said: “Investors remain concerned that the company has not yet demonstrated that its strategy, which includes growth in oil and gas as well as pursuing low-carbon businesses, is consistent with the Paris goals.”
Helge Lund, BP’s chairman, said additional reporting requirements will “build on BP’s history of progressive action in this area.”
