*Japan paid a record low $2.20/mn BTU for LNG cargoes contracted in May, in line with Reuters average spot assessments of $2.10/mn BTU for June-arrival East Asia cargoes, also a record low. Prices remain at similar levels in July trading.
*The bulk of deliveries to the four key East Asian buyers – Japan, China, Korea and Taiwan – remain under term contracts. Delayed oil-price linkage means these prices have remained firm. But they are set to slump from this month. The freshly-released JCC crude price for April is down $20/B at $42.29/B. This will hit term LNG prices from June given contractual pricing delays (see chart and MEES, 22 May). (CONTINUED - 220 WORDS)
