Prices of spot liquefied natural gas (LNG) imported into Japan are continuing their rise pushed by dropping temperatures.
Data from Japan’s Ministry of Economy, Trade and Industry shows that the price of spot LNG contracted during December 2020 reaching $8.6 per mmBtu.
This is the highest contract-based price since December 2018 when it was reported at $9.2 per mmBtu.
The price recovered from a record low of $2.2 per mmBtu reported in May 2020 .
Compared to the previous month , when the contract-based price was at $6.8 per mmBtu, this is a 26.5 per cent increase.
The price of spot LNG arriving into Japan in December 2020 reached $6.8 per mmBtu, up 4.6 per cent on the $6.5 per mmBtu reported during the previous month.
Compared to the corresponding month in 2019, the arrival-based price edged up by $0.1 per mmBtu. However, it is still below the levels recorded in December 2018 when the arrival-based price was at $10.6 per mmBtu.
The ministry surveys only spot LNG cargoes purchased by Japanese utilities and other importers.
It excludes cargo deals linked to a particular price index such as the US Henry Hub and the JKM.