Japan buys most expensive gas shipment as energy crunch bites

Business Times -- Jul 20

Japan bought its most expensive ever natural gas shipment as an escalating global energy crunch brings new risks of blackouts and intensifies competition for fuel imports.

Nippon Steel purchased a liquefied natural gas (LNG) cargo for delivery in September in the low-US$40 per million British thermal units range, according to traders with knowledge of the matter. The cargo is Japan's most expensive ever, they said.

The shipment is likely to cost more than US$135 million, according to Bloomberg calculations, and the exorbitant price shows the premium Japan is being forced to pay as it grapples with strained electricity supplies and high demand. Tokyo has seen 2 major power crunches this year, including during a severe heatwave last month.