LNG

Shizuoka Gas, a Japanese city gas utility, has signed a seven-year contract to import LNG starting April 2027 indexed at a 12% slope to Brent crude oil prices, traders told S&P Global Commodity Insights. Shizuoka is reportedly seeking to source five cargoes per year under the contract, concluded on a delivered ex-ship (DES) basis.

LNG imports to Japan have reached a new record, surging 5.7% year-on-year to 7.84 million tons in July due to rising seasonal demand from utilities as the nuclear void continues, government data shows.

A steady downward trend of European and Asian gas prices is squeezing the economics of liquefaction and export projects as anticipated RoI is revised down along with prices.