SUBSCRIBER NOTE: Replacement of Qinhuangdao coal price with Northeast Asia Thermal Coal Index

Following a subscriber note published on December 15, 2016 regarding the replacement of the Qinhuangdao Coal $/MMBtu price conversion (code: LSAGH00) with the new JKT Coal Index $/MMBtu conversion (code: JKTCB00), S&P Global Platts has decided to rename the JKT Coal Index as Northeast Asia Thermal Coal price index, or NEAT Coal Index -- a price assessment based on seaborne delivery to Japan, South Korea and Taiwan. As previously stated the new daily price conversion will reflect trade in thermal coal with a calorific value of 5,750 kcal/kg net as received on a CFR basis traded in the spot market, for delivery in a 15-60 day forward window in a standard Panamax vessel of 75,000 mt.

Thermal coal grades with the following specifications will be included in the assessment process for the NEAT Coal Index: calorific value of coal ranging from 5,500 kcal/kg to 6,100 kcal/kg on NAR basis, maximum total sulfur content of 1% as received, maximum ash of 20% as received, maximum total moisture of 16% as received and volatile matter of up to 38% as received.

For assessment purposes, Platts will consider all discharge ports in Japan, South Korea and Taiwan but will normalize to Kinuura Port, Japan on a delivered basis.

The new $/MMBtu conversion of this price will appear in LNG Daily, and Platts Natural Gas Alert page 1024, effective January 27, 2017. Please address any questions or comments to LNGeditorialteam@spglobal.com and pricemethodology@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 will make comments not marked as confidential available to the public upon request.