Korea Western Power Co. has signed a contract with the Korea Gas Corporation to purchase natural gas..

사진 확대

(From left) President Lee Jung-bok and President Choi Yeon-hye of Korea Gas Corporation are taking commemorative photos at the “signing ceremony for the sale of natural gas for the individual rate system for power generation.” [Picture = Korea Western Power Co., Ltd.]

Korea Western Power Co. has signed a contract with the Korea Gas Corporation to purchase natural gas for individual rates for power generation for the first time as a power generation public company.

Western Power announced on the 2nd that it held a “signing ceremony for the sale of natural gas for individual rates for power generation” with the Korea Gas Corporation at the L&G Business Hub in Jung-gu, Seoul.

About 10 officials from both sides, including Lee Jung-bok, president of Western Power Co., and Choi Yeon-hye, president of Gas Corporation, attended the event.

The individual rate system is a system that calculates rates according to the contract terms of consumers, such as volume, period, and place of supply, when the Korea Gas Corporation supplies natural gas. Unlike the existing rate system, which averages all contract prices signed by the Korea Gas Corporation and applies them at the same unit price, the individual rate system is a method in which the introduction contract at a specific point in time is linked to a specific generator.

Western Power explained that it has advantages in reducing fuel costs and securing flexibility in fuel procurement strategies as it can secure favorable prices suitable for market conditions and supply and demand conditions.

Under the contract, Western Power will receive 750,000 tons of natural gas annually and about 800 million tons of natural gas by 2036, from Gumi Natural Gas Power Plant, the first domestic fuel conversion power plant, Gimpo Thermal Combined Power Plant, where Korean gas turbines were installed, and Gongju Natural Gas Power Plant.

President Lee Jung-bok said, “We have secured long-term natural gas supplies stably at a time when the volatility of the raw material market is increasing due to tariff disputes from the U.S.,” adding, “We will continue to actively cooperate with the Korea Gas Corporation to provide economic and stable electricity.”