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Japan needs flexible and secure LNG supply

The drive for more Henry Hub-based pricing in Japanese LNG contracts may not guarantee importers cheaper LNG in the long run, but it at least ensures greater price diversity, a Mitsubishi executive told delegates at the CWC World LNG Summit in Barcelona on Thursday.
By Leigh Elston 29 November 2012 Asia Pacific / LNG 0 14614

The drive for more Henry Hub-based pricing in Japanese LNG contracts may not guarantee importers cheaper LNG in the long run, but it at least ensures greater price diversity, a Mitsubishi executive told delegates at the CWC World LNG Summit in Barcelona on Thursday.

“I’m not saying that a Henry Hub pricing structure will give a lower price [than oil-linked contracts], because if the Henry Hub is running at around $5-6 per million Btu and the oil price drops to $90 per barrel, who knows which...