Japan spot LNG contract price hits 8-month high in October
The average contract price for spot liquefied natural gas cargoes for shipment to Japan hit an eight-month high in October, reflecting firm demand as supply tightened ahead of the winter heating season.
The spot LNG contract price at the world’s top LNG consumer rose $1.30 to $8.20 per million British thermal units (mmBtu) last month, data from the Ministry of Economy, Trade and Industry showed on Friday. The average price of spot LNG cargoes that arrived in Japan last month was $6.10 per mmBtu. Asian spot prices LNG-AS for December rose to $9 per mmBtu by late October, up 50 cents from earlier in the month, supported by tighter supply.
METI surveys spot LNG cargoes bought by Japanese utilities and other importers, but excludes cargo-by-cargo deals linked to benchmarks such as the U.S. natural gas Henry Hub index. It only publishes a price if there is a minimum of two eligible cargoes reported by buyers. The following table lists the monthly average prices in mmBtu for contracted and arriving spot LNG cargoes. Prices are converted to delivery on an ex-ship basis.
Source: Reuters (Reporting by Osamu Tsukimori; Editing by Manolo Serapio Jr.)