[Featured Stock] Daesung Energy, Asia LNG Spot Price Surges 5 Times... City Gas Supply & Natural Gas Charging Station Operation

[Asia Economy Reporter Hyungsoo Park] Daesung Energy is showing strong performance. It appears to be influenced by the surge in related stocks as natural gas prices continue to rise.

At 11:40 AM on the 28th, Daesung Energy was trading at 10,200 KRW, up 23.94% from the previous day. GS E&C surged to the price limit.

On the 27th (local time) at the New York Mercantile Exchange, the October natural gas price rose 10.21% from the previous day to $5.73 per 1 MMBtu (unit of heat). This is the highest level since February 2014.

Shin Jiyoon, head of the KTB Investment & Securities Research Center, said, "LNG prices imported to Japan and Korea are soaring," adding, "JKM surged nearly fivefold from $5.8 per MMBtu in March to $27 in September."

She also explained, "The fundamental reason lies in decarbonization. The closure of coal power plants across the European continent over several years and the strengthening of various carbon emission regulations have increased carbon credit prices, which in turn has boosted demand for switching from coal to gas."

She continued, "The share of coal consumption in Europe's primary energy dropped sharply from 26% in 2009 to 16% in 2019 and 13% in 2020," adding, "EU carbon credit prices have risen 93% since the beginning of this year."

Furthermore, she emphasized, "From January to August this year, China's coal imports decreased by 24.1% compared to the same period last year, while LNG imports increased by 23.9%. The decarbonization policies of the three Asian countries, namely Korea and Japan aiming for Net Zero by 2050, and China by 2060, are taking root."

Daesung Energy supplies city gas for cooking, heating, cooling and heating air conditioning, commercial, and industrial use by receiving natural gas from Korea Gas Corporation. It operates 12 natural gas refueling stations for fuel supply to city buses and others. It also operates a combined heat and power plant supplying heat and electricity in the Jukgok district of Daegu Metropolitan City.