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.
In the business of hydrocarbon production, accurate accounting of produced fluids and gases is critical from a process control, management and fiscal perspective.
The US East Coast will send out its first LNG exports in early 2018 as Dominion Energy’s Cove Point LNG export facility in Lusby, Maryland becomes operational.
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