Japanese May Spot LNG Price Drops Sharply

The average price of spot LNG imports into Japan contracted in May was $2.2/mn Btu, sharply down from $5.4/mn Btu in the same month a year earlier, the country's trade ministry (Meti) said on June 9. Compared with April, the price was down by 8.3%.

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 June 9 the arrival-based spot LNG price at $2.6/mn Btu, down from 5.3/mn Btu in May 2019. 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.