Platts clarifies normalization of prompt LNG cargo information published during the MOC process

Platts, part of S&P Global Commodity Insights, clarifies that it may normalize bids, offers and trades of physical LNG cargoes with delivery windows prompter than standard nomination deadlines, published during the Market on Close processes for its LNG price assessments.

For JKM, WIM and SEAM, by standard market practice, bids with a delivery window less than 30 days forward require the potential sellers to nominate a final loading port and final performing vessel upon trading the bids, while offers with a delivery window less than 30 days forward require the potential buyers to nominate a final one-day delivery window upon trading the offers. In the case of JKM, offers with a delivery window less than 30 days forward also effectively require the potential buyers to nominate the final country of delivery upon trading the offers.

Similarly, for NWE, MED and EMM, bids with a delivery window less than 15 days forward require the potential sellers to nominate a final loading port and final performing vessel upon trading the bids, while offers with a delivery window less than 20 days forward require the potential buyers to nominate a final one-day delivery window upon trading the offers. In addition, offers with a delivery window less than 15 days forward require the potential buyers to nominate a final disport upon trading the offers.

As such, these prompter bids, offers and ensuing trades potentially limit the optionality of the counterparties, as compared to bids and offers with delivery windows further out than standard nomination deadlines, and, as a result, Platts may normalize such prompt cargo information for its price assessment of these markets.

Please send all feedback, comments, and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and make comments not marked as confidential available upon request.