Japan spot LNG contract price hits 8-month high in Oct
TOKYO (Reuters) — The average contract price for spot liquefied natural gas cargoes for shipment to Japan hit an eight-month high in October, reflecting firm demand as supply tightened ahead of the winter heating season.
The spot LNG contract price at the world's top LNG consumer rose $1.30 to $8.20 per MMBtu last month, data from the Ministry of Economy, Trade and Industry showed on Friday.
The average price of spot LNG cargoes that arrived in Japan last month was $6.10 per MMBtu.
Asian spot prices LNG-AS for December rose to $9 per MMBtu by late October, up 50 cents from earlier in the month, supported by tighter supply.
METI surveys spot LNG cargoes bought by Japanese utilities and other importers, but excludes cargo-by-cargo deals linked to benchmarks such as the US natural gas Henry Hub index.
It only publishes a price if there is a minimum of two eligible cargoes reported by buyers.
Reporting by Osamu Tsukimori; Editing by Manolo Serapio Jr.
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At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
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