Japanese spot LNG prices dropped in March when compared to record numbers logged in January and February due to a cold snap in Asia, but they increased year-on-year.
The average contract-based price for spot LNG cargoes shipped to Japan in March reached $6.60/mmBtu, data released by the Ministry of Economy, Trade and Industry reveals.
This marked a decline compared to the previous month’s price of $12.7/mmBtu or the record $18.5/mmBtu logged in January, but it almost doubled when compared to $3.40/mmBtu recorded in the same month last year.
Moreover, the arrival-based spot price reached $9.30/mmBtu, down from 16.3/mmBtu last month. February price marked the second-highest ever price METI recorded since March 2014.
METI did not provide the arrival-based spot price in March 2020 due to lack of spot shipments but last month’s price was much higher than the $5.50/mmBtu recorded in February 2020 or $3.0/mmBtu logged in April 2020.
To remind, 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.
