Japan - Liquefied Natural Gas (LNG) Price Monthly and Annualy

The Price of Japan - Liquefied Natural Gas (LNG) in International Commodity Markets for April 2024 is 13.26 dollars per mmbtu, as estimated by the World Bank. In comparison to the previous month, March 2024, when Japan - Liquefied Natural Gas (LNG) was valued at 13.19 dollars per mmbtu, there has been a net change of 0.070 dollars. This represents a percentage increase of 0.53%. Looking back to April 2023, the Japan - Liquefied Natural Gas (LNG) price stood at 14.37 dollars per mmbtu. The current data reflects a dynamic market with a modest increase in Japan - Liquefied Natural Gas (LNG) prices from April 2023 to April 2024, signaling potential shifts in global economic trends.

Japan - Liquefied Natural Gas (LNG) Price in Last 12 Months World Bank

Source: World-bank
Last Updated: 25 May 2024
Index Last 12 Months Nominal US Dollars($/mmbtu) Net-Chg Percentage-Chg
13April 2023$ 14.37--
12May 2023$ 13.43 $ -0.94-7.00 %
11June 2023$ 12.68 $ -0.75-5.91 %
10July 2023$ 12.99 $ 0.312.39 %
9August 2023$ 12.54 $ -0.45-3.59 %
8September 2023$ 12.21 $ -0.33-2.70 %
7October 2023$ 12.62 $ 0.413.25 %
6November 2023$ 12.72 $ 0.100.79 %
5December 2023$ 14.44 $ 1.7211.91 %
4January 2024$ 14.34 $ -0.10-0.70 %
3February 2024$ 13.64 $ -0.70-5.13 %
2March 2024$ 13.19 $ -0.45-3.41 %
1April 2024$ 13.26 $ 0.070.53 %

Japan - Liquefied Natural Gas (LNG) Price Annual World Bank

Japan - Liquefied Natural Gas Price in 2023 was 14.23 dollars per mmbtu estimated by the world bank.

In the previous year, 2022 Japan - Liquefied Natural Gas Price was 18.43 dollars per mmbtu. The net change in Japan - Liquefied Natural Gas Price in 2023 was -4.2 dollars which is about a -29.52% decrease in price.

Source: World-bank
Year Price Nominal US Dollars($/mmbtu) Net-ChangePercentage-Change
1960---
1961---
1962---
1963---
1964---
1965---
1966---
1967---
1968---
1969---
1970---
1971---
1972---
1973---
1974---
1975---
1976---
19772.77--
1978$ 3.04 $ 0.278.88 %
1979$ 3.69 $ 0.6517.62 %
1980$ 5.70 $ 2.0135.26 %
1981$ 6.03 $ 0.335.47 %
1982$ 6.05 $ 0.020.33 %
1983$ 5.55 $ -0.50-9.01 %
1984$ 5.24 $ -0.31-5.92 %
1985$ 5.23 $ -0.01-0.19 %
1986$ 4.10 $ -1.13-27.56 %
1987$ 3.35 $ -0.75-22.39 %
1988$ 3.34 $ -0.01-0.30 %
1989$ 3.28 $ -0.06-1.83 %
1990$ 3.64 $ 0.369.89 %
1991$ 3.99 $ 0.358.77 %
1992$ 3.60 $ -0.39-10.83 %
1993$ 3.51 $ -0.09-2.56 %
1994$ 3.18 $ -0.33-10.38 %
1995$ 3.45 $ 0.277.83 %
1996$ 3.67 $ 0.225.99 %
1997$ 3.91 $ 0.246.14 %
1998$ 3.02 $ -0.89-29.47 %
1999$ 3.14 $ 0.123.82 %
2000$ 4.71 $ 1.5733.33 %
2001$ 4.63 $ -0.08-1.73 %
2002$ 4.28 $ -0.35-8.18 %
2003$ 4.73 $ 0.459.51 %
2004$ 5.13 $ 0.407.80 %
2005$ 5.99 $ 0.8614.36 %
2006$ 7.08 $ 1.0915.40 %
2007$ 7.68 $ 0.607.81 %
2008$ 12.53 $ 4.8538.71 %
2009$ 8.94 $ -3.59-40.16 %
2010$ 10.85 $ 1.9117.60 %
2011$ 14.66 $ 3.8125.99 %
2012$ 16.55 $ 1.8911.42 %
2013$ 15.96 $ -0.59-3.70 %
2014$ 16.04 $ 0.080.50 %
2015$ 10.93 $ -5.11-46.75 %
2016$ 7.37 $ -3.56-48.30 %
2017$ 8.61 $ 1.2414.40 %
2018$ 10.67 $ 2.0619.31 %
2019$ 10.56 $ -0.11-1.04 %
2020$ 8.31 $ -2.25-27.08 %
2021$ 10.76 $ 2.4522.77 %
2022$ 18.43 $ 7.6741.62 %
2023$ 14.23 $ -4.20-29.52 %

Introduction

In recent years, Japan has emerged as one of the world's largest consumers of liquefied natural gas (LNG). The country heavily relies on LNG imports to meet its energy needs due to limited domestic energy resources. As a result, the price of LNG in Japan plays a crucial role in the country's energy market.

The Dynamics of LNG Pricing

The price of LNG in Japan is influenced by various factors, including global supply and demand dynamics, transportation costs, market competition, and government policies. Let's take a closer look at these factors:

 1. Global Supply and Demand

The global supply and demand for LNG directly impact its price. When demand outpaces supply, prices tend to rise, and vice versa. Japan's LNG demand is particularly high due to its large population and industrial activities.

 2. Transportation Costs

Liquefied natural gas is transported through specialized carriers, often over long distances. The cost of transporting LNG from exporting countries to Japan affects its final price. Factors such as shipping distance, vessel availability, and fuel prices contribute to transportation costs.

 3. Market Competition

Japan is not the only country importing LNG. Other major importers, such as China and South Korea, compete for LNG supplies in the global market. The level of competition among these countries can impact the price of LNG in Japan.

 4. Government Policies

The Japanese government plays a significant role in shaping the LNG market through policies and regulations. The government's decisions regarding energy mix, environmental regulations, and trade agreements can influence LNG prices and market dynamics.

Price Determination

The pricing of LNG in Japan follows a combination of long-term contracts and short-term spot market prices. Let's understand these pricing mechanisms:

 1. Long-Term Contracts

Japanese utility companies often enter into long-term contracts, typically spanning 10 to 20 years, with LNG suppliers. These contracts establish a fixed pricing formula, often indexed to the price of crude oil or a basket of energy commodities. Long-term contracts provide stability and security of supply, but they may not reflect immediate market fluctuations.

 2. Spot Market Pricing

The spot market refers to the purchase or sale of LNG on a short-term or immediate basis, without long-term contracts. Spot prices are influenced by real-time market conditions, supply-demand dynamics, and regional factors. Spot market pricing offers flexibility but can be subject to volatility.

Impact on the Energy Sector

The price of LNG in Japan has significant implications for the country's energy sector. Here are some key impacts:

 1. Consumer Affordability

As LNG is a vital source of energy for electricity generation, higher LNG prices can impact electricity bills for consumers. Fluctuations in LNG prices can affect the affordability of energy for households and businesses.

 2. Competitiveness of Industries

Industries relying on LNG for their operations, such as manufacturing and petrochemicals, are sensitive to price changes. Higher LNG prices can increase production costs, reducing the competitiveness of these industries in both domestic and international markets.

 3. Energy Security

Ensuring a stable and affordable supply of LNG is crucial for Japan's energy security. The country's heavy reliance on LNG imports necessitates strategic planning to mitigate potential supply disruptions and price volatility.

Conclusion

In conclusion, the price of liquefied natural gas (LNG) in Japan is influenced by global supply and demand dynamics, transportation costs, market competition, and government policies. Long-term contracts and spot market pricing mechanisms determine the final price of LNG. The LNG price has far-reaching implications for consumer affordability, the competitiveness of industries, and energy security in Japan. As the country continues to navigate its energy landscape, understanding the factors affecting LNG prices remains crucial for stakeholders in the energy sector.