Japan's July LNG Import Costs Rise 39% After Increase in Crude Oil Prices

Japan, the world’s biggest importer of liquefied natural gas, paid 39 percent more for the fuel in July from a year earlier as crude oil prices climbed, according to calculations based on official data.

Prices for delivered LNG rose to 51,529 yen ($611) a metric ton in July, according to the data from the Ministry of Finance. That’s equivalent to about $11.60 per million British thermal units, more than twice the price of U.S. benchmark gas futures at Henry Hub, according to data compiled by Bloomberg.

Japan’s purchases of the cleaner-burning fuel increased to 34.68 million tons in the first six months of this year from 31.65 million tons a year earlier as Asian economies rebounded from a global recession. Asian LNG imports may increase 8 percent this year after declining 3 percent in 2009, Facts Global Energy said in a report in July.

Japanese imports climbed in July to 5.6 million tons from 5.4 million tons a year earlier, according to the data. The nation bought a spot cargo from Egypt at 60,547 yen a ton. It bought one spot cargo a year earlier at 44,115 yen from Equatorial Guinea.

Crude oil futures in New York more than doubled in the 12 months through March to $83.76 a barrel. Oil for October delivery traded at $74.25 a barrel at 12:15 p.m. Singapore time. Natural gas for October traded at $3.89 per million British thermal units in New York.

LNG is natural gas that’s been chilled to liquid form, reducing it to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 259 Fahrenheit), for transportation by ship to destinations not connected by pipeline.

To contact the reporter on this story: Dinakar Sethuraman in Singapore at dinakar@bloomberg.net.

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