Japan Imported 6.66 Million Mt of LNG in November

Japan imported 6.66 million mt of LNG in November, almost stable from October, when imports were recorded at 6.67 million mt, customs data released Thursday by the Ministry of Finance showed. 

However, LNG imports were down 4.5% from the 6.98 million mt in November 2011. 

Post summer in North Asia, October and November typically form the shoulder months with lower demand for LNG as a result of the milder weather. This occurs before the onset of the winter season spanning December to March when consumption of the fuel rises for power and heat generation use. 

Australia maintained its position as the top LNG exporter to Japan, sending 1.43 million mt in November, down 12.1% month-on-month, but up 27.5% year-on-year. 

Qatar was the second-largest supplier, delivering 1.12 million of LNG to Japan in November, up 16.0% from October, but down 16.8% from a year ago. 

The US shipped a 37,714-mt spot cargo to Japan in November, with data from the US Department of Energy showing that the delivered price of the spot cargo was $13.00/MMBtu. This matched the Platts November LNG Japan Korea Marker, which averaged $13.005/MMBtu over the entire assessment period of September 17 to October 15. 

This US shipment was loaded on the LNG Gemini at ConocoPhillips' Kenai LNG plant in Alaska on October 25, data from DOE showed. According to Platts ship tracking software cTrack, the tanker arrived at Kansai Electric's Himeiji LNG regasification terminal in Japan on November 7. 

Japan's LNG import price averaged $791.58/mt ($15.22/MMBtu) in November, down 1.4% month-on-month and down 9.6% from November 2011. 

The most expensive imports in November were from Belgium, with an average price of $944.06/mt ($18.16/MMBtu), while the cheapest were from Oman at an average $563.24/mt ($10.83/MMBtu). 

The 71,383 mt shipment from Belgium was the second that Japan has received to date. Belgium delivered its first cargo to Japan in March. At that time, the 48,988 mt Belgian re-export cargo cost $963.50/mt ($18.53/MMBtu). 

The Japan Customs Cleared crude oil price in November was $113.851/barrel, down 1.5% from the previous month, but up 2.7% year-on-year. 

Japan's term LNG contracts tend to be linked to the JCC crude price but with a lag of a few months, so fluctuations in oil prices typically take some time to feed through to LNG prices.