Japanese February Spot LNG Price Drops 30%

The average price of spot LNG imported into Japan contracted in February 2019 was $7.5/mn Btu, down 29.2% year-on-year, the country's trade ministry (Meti) said March 11. The price was unchanged month-on-month.

Meti prices are ‘delivered ex ship’ in Japan, or else are converted into such a ‘DES’ equivalent.

Meti also published March 11 official average arrivals-based prices each month for spot LNG cargoes. The latest figures show that February arrivals’ average value was $8.3/mn Btu, down from $10.5mn/Btu for January. This is likely to reflect weaker oil prices and suggests a sizeable discount for spot deliveries, compared with LNG sold on term contracts.