Japanese spot LNG cargo prices dropped again in August after slight increases in the previous two months.
The effects of the Covid-19 coronavirus pandemic have weighed down on Japan’s spot LNG prices pushing them to record lows in the March-May period.
They started to pick up in June and the contract-based price even increased year-on-year in July but declined again in August.
Data released by the Ministry of Economy, Trade and Industry shows that both arrival-based and contracted price declined last month.
The average contract price for spot LNG cargoes shipped to Japan in August stood at $3.40/mmBtu.
This compares to $4.20/mmBtu in July and $5.30/mmBtu recorded in August 2019.
METI’s data shows the arrival-based spot price stood at $2.60/mmBtu, down both from last month’s $4.10/mmBtu and $5.50/mmBtu recorded in July last year.
The ministry surveys only spot LNG cargoes purchased by Japanese utilities and other importers.
It excludes cargo deals linked to a particular price index such as the US Henry Hub.