Japanese spot liquefied natural gas (LNG) prices have surged 32.35% month-on-month in September, supporting signs of demand recovery ahead of the winter heating season.

Latest data from the country’s ministry of economy, trade and industry (METI) shows that the average contract-based spot price was at $4.50 per million British thermal units (MmBtu). In August, the price averaged $3.40/MmBtu.

However, prices remain below levels recorded last year. In September 2019, contracted spot prices were traded at an average of $5.40/MmBtu, Kallanish Energy reports.

METI data also shows that the arrival-based price was up 30.7% from $2.6/MmBtu in August, to $3.4/MmBtu last month.

These prices exclude spot transactions linked to regional indexes such as the Henry Hub and the JKM. They reflect spot LNG cargoes purchased by Japanese utilities and other importers.

This post appeared first on Kallanish Energy News.