Nippon Steel purchases LNG shipment at most expensive price  

Nippon Steel has purchased a liquefied natural gas shipment at the highest price ever paid in Japan amid growing fears of disruptions of LNG supplies from Russia.

The world’s second-largest steelmaker bought an LNG cargo for delivery in September at a price of $41 per million British thermal units (mmBtu), most likely supplied by a major trading house.

This would mark it as the most expensive LNG cargo ever purchased by the country, as a standard LNGC sized vessel, the cargo would only cost between $132 million and $135 million depending on load tolerance.

Competition to secure LNG cargoes has intensified since Russia’s Feb. 24 invasion of Ukraine, which Moscow calls a special military operation. Europe is buying massive amounts of LNG, further increasing market tightness and elevating prices.

Resource-poor Japan faces a historic energy security risk as tensions with Moscow intensify, heightening the threat of gas supply disruptions at a time when global supply is tight and spot prices are sky-high.