Platts clarifies consideration in APAC LNG assessments of some floating price physical information

S&P Global Platts is clarifying the publication of Dutch Title Transfer Facility (TTF) related floating physical bids and offers reported during the Asia-Pacific LNG Market on Close assessment process as well as the definition of TTF considered in the MOC.

In addition, Platts is clarifying the consideration for assessment purposes of JKM Balance-of-Month (BalMo) Next-Day (ND) physical bids and offers in the same assessment process. Platts considers JKM BalMo ND-linked physical bids and offers for assessment purposes.

Platts only considers for assessment purposes TTF-related floating physical bids and offers that have values yet to be published in full-month average calculations. This is due to market feedback suggesting that other forms of TTF-linkage are more common in the physical LNG market.

For example, on Feb. 28, Platts will only publish TTF-related information linked to the full-month average of April prices or the full-month average of May prices.

On March 1, Platts will only publish TTF-related information linked to the full-month average of May prices or the full-month average of June prices.

In addition, Platts may consider for assessment purposes TTF-related floating physical bids and offers priced off the average of the balance of dates yet to be published for front-month TTF.

From Feb. 15, Platts Editorial Window (eWindow) communication tool will have a new pricing basis instrument "Any Day - See TQC", for TTF-related floating physical bids and offers.

Market participants will need to state the pricing basis period of the underlying derivatives instrument in the TQC box for an "Any Day - See TQC" bid or offer. For a floating bid or offer priced against front-month TTF for example, the pricing period stated would comprise the balance of dates yet to be published for the front-month TTF.

For example, on March 1, an "Any Day - See TQC" April TTF-related bid or offer would be settled against the published values for TTF from March 2 until the last published date in March for April TTF by the publisher, and this date range should be reflected in the TQC box.

Furthermore, Platts is clarifying the basis of TTF settlement considered in the MOC process.

The basis of TTF settlement is as follows:

Calculation: The arithmetic average of the settlement prices of any day on which the closing or settlement price is published for the month by a benchmark provider expressed in EUR/MWh, and converted to USD/MWh each day by multiplying EUR/USD of the same day.

Conversion factor: 1 MMBtu = 0.293071 MWh, which is equivalent to 1 MWh = 3.412.

Foreign exchange: The EUR/USD value used must be of the same business day of the TTF price publication and provided by a reputable foreign exchange data provider.

Market participants must state clearly in bids and offers the publishing source used for the TTF settlement, as well as the foreign exchange rate data provider used for the EUR/USD value.

Please send any questions, comments or feedback 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 will make comments not marked as confidential available upon request.