Platts proposes to launch new WIM derivative assessments

S&P Global Platts is proposing to launch new monthly, quarterly, seasonal and calendar year West India Marker (WIM) LNG derivative assessments from May 3, 2021.

Under the proposal, Platts would publish four monthly derivative assessments including the WIM pricing month and three forward months from the pricing month, next two active forward quarters, next two active seasons and three forward calendar years.

The new WIM LNG derivative assessments would be published in dollars per million British thermal unit ($/MMBtu) to three decimal places at the close of Asian trade at 4:30 pm Singapore time (0830 GMT), and would follow the Singapore publishing schedule.

The WIM LNG derivative assessments would settle on the average of the Platts physical WIM assessments (price database code AARXS00). Platts would take into consideration bids, offers and trades for a minimum of 25 lots (one lot is equivalent to 10,000 MMBtu) for these assessments, matching the minimum lot size in its existing JKM derivative assessments.

The monthly WIM LNG derivative assessments would reflect the WIM pricing month and three months forward. For example, on May 3, 2021, Platts assesses the physical WIM for June delivery, and assesses WIM derivatives for June, July, August and September. These assessments roll over on the 16th of each calendar month unless that day is not a business day, in which case the assessments roll over on the following business day. For example, on May 16, 2021, the WIM derivative assessments roll over to July, August, September and October.

Quarterly assessments would reflect the two quarters beyond the active forward quarter, or forward quarter +1 and forward quarter +2. For example, if the physical WIM pricing month is for June delivery, then the quarterly derivative assessments would be the third and fourth quarter of the calendar year. Each quarterly assessment rolls over as pricing begins on the first month of each new quarter. Seasonal assessments would reflect the two seasons beyond the active forward season, or forward-season +1 and forward-season +2, for summer or winter deliveries.

Seasons would be defined as follows: Summer represents April to September, and Winter represents October to March. The seasonal assessments roll over on the first pricing day when the WIM pricing month is either April or October. For example, on Feb. 16, 2021, Platts would assess Winter 2021 and Summer 2022 prices. On Aug. 16, 2021, Platts would assess Summer 2022 and Winter 2022 prices.

The three calendar year assessments would reflect the calendar years beyond the active calendar year, and roll over on the first business day of the year. For example, in December 2021, Platts would assess Cal 2022, 2023 and 2024. In January 2022, these calendar year assessments would roll over to Cal 2023, 2024 and 2025.

Please send all questions and feedback to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by March 19, 2021. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.