Northeast Asia’s average LNG import price has continued to fall, but higher oil prices will provide support for contract prices in the coming months.
The average prices paid by Japan, South Korea and China for imported LNG fell on an annual basis in February. Japan paid an average of $7.9/MMBtu, down by roughly 41% year on year. South Korean prices dropped by 42%, to $7.8/MMBtu. Chinese prices fell to $7/MMBtu, a more moderate decline of 32%. The average price of piped supplies to China also fell by 32% year on year, to $5.8/MMBtu. Average LNG import prices will be forced up over the next few months as oil prices have gone up in recent weeks. This will filter through into the oil-indexed long-term contracted supplies that dominate the LNG market.
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