South Korea’s Sinokor To Launch LNG Trading Desk
South Korea’s Sinokor Merchant Marine is set to open a physical LNG trading desk, according to reports.
The shipping company has hired a trader and will establish the operation in either in South Korea or Singapore, Reuters reported May 14, quoting unnamed industry sources.
Asia’s main oil trading hub Singapore is pushing to take on the same role for LNG. South Korea is the globe's third-largest LNG importer after Japan and China, and imports swelled to a record 42mn mt in 2018.
The move comes as demand for the frozen fuel on spot markets expands and players on both side seek routes to quicker and more efficient trading. Several new LNG pricing and trading platforms have been set up in recent months.
However, shipping companies such as Sinokor are not well represented. The last maritime operator to try its hand lasted no more than two years. Golar LNG blamed adverse market conditions when its LNG trading arm sank in 2012.