Japanese April Spot LNG Price Drops Sharply

The average price of spot LNG imports into Japan contracted in April was $2.4/mn Btu, sharply down from $5.2/mn Btu in the same month a year earlier, the country's trade ministry (Meti) said on May 14. Compared with March, the price was down 29.4%.

Meti prices are delivered ex ship (DES) in Japan or else are converted into a DES equivalent and are simple averages, excluding LNG sold on Henry Hub or the Japan Korea Marker, a spot assessment published daily by SP Global. 

Meti also reported May 14 the arrival-based spot LNG price at $3/mn Btu, down from 5.9/mn Btu in April 2019. Meti did not publish the official average arrivals-based price for March 2020. Arrival-based LNG is higher as the contracts were signed earlier in the year.

Meti gathers prices from end-consumers of spot LNG and in order to avoid double counting, it excludes companies that mediate transactions such as trading companies.