[Click eStock] "Korea Gas Corporation, Growth Potential Highlighted in Trump 2.0 Era"

iM Securities analyzed on the 31st that Korea Gas Corporation's profitability will become visible and its growth potential will be highlighted with the advent of the Trump 2.0 era. No investment opinion or target price was presented.

Lee Sang-heon, a researcher at Hi Investment & Securities, said, "Last year, the domestic LNG import volume was 46.51 million tons, of which Korea Gas Corporation accounted for 34.19 million tons," adding, "Korea Gas Corporation holds the largest purchasing power as a single company globally." He continued, "It not only prioritizes investment requests for global LNG development projects but also firmly maintains its position as a major global LNG purchaser."

In particular, he predicted that Korea Gas Corporation would benefit as the import of U.S.-made LNG accelerates in the Trump 2.0 era. He stated, "Under the Trump 2.0 era's fossil fuel revitalization plan, large-scale oil and natural gas development and production will proceed, expanding LNG exports," and added, "Above all, in the Trump 2.0 era, efforts to improve the U.S. trade deficit are likely to be linked not only to tariff negotiations but also to defense cost negotiations."

He explained, "U.S.-made LNG is imported based on the spot market price in the Henry Hub region of Louisiana, where natural gas pipeline networks converge," and "Middle Eastern LNG import prices are determined by oil price linkage."

He analyzed, "Recently, even including logistics and other import costs of U.S.-made LNG, it is relatively cheaper compared to oil price linkage," and "If the import of U.S.-made LNG accelerates, it could lead to cost reductions and be a factor in decreasing outstanding payments."

He evaluated, "Most U.S. LNG export projects do not include destination restriction clauses, so Korea Gas Corporation can enhance its supply and demand adjustment capabilities when contracts are signed," and "LNG trading is also possible, which could pursue profit generation."

He emphasized, "Although smaller than Japan as a whole, Korea Gas Corporation possesses the largest storage facility capacity globally for a single company, allowing a very large volume to be used for trading purposes."