According to Reuters, in July, Japan imported its first LNG cargo from China since 1988, as utilities seek new suppliers and try to reduce costs amid tough domestic competition.
Reuters reports that the 70 560 t cargo was shipped from the Hainan LNG terminal, which is operated by CNOOC Ltd, to Chita, near Nagoya, where Toho Gas jointly operates an LNG terminal with JERA.
Reportedly, the cargo was delivered at US$5.68/million Btu. This is below Japan’s average import cost of US$9.50/million Btu for LNG in July.
Reuters claims that this shipment illustrates the increasing flexibility of the Asian LNG market.