SUBSCRIBER NOTE: Platts clarifies methodology for FOB Australia LNG netback

Platts would like to clarify its methodology for its LNG FOB Australia netback calculation.

Platts has become aware that the LNG FOB Australia netback calculation (symbol AARXR00) as published via Platts LF market data category and via natural gas alert (Page NG1020) had been using an inappropriate cargo size from August 1, 2012 until February 10, 2015. The calculation was done using a cargo size of 64,000 mt (equivalent to a cargo size of around 140,000 cubic meters) as opposed to the 66,000 mt (equivalent to a cargo size of around 145,000 cu m) stated in the published methodology for normalization. Data published via PDF in LNG Daily during this period was not affected and has been correctly published.

From August 1, 2012, Platts increased the standard ship and cargo size of 125,000-155,000 cubic meters to 135,000-175,000 cu m reflected in its global LNG assessments.

Platts is currently reviewing the published calculations to establish whether the error is material and requests subscriber feedback by March 31, 2015 on the impact of a proposed correction to the erroneous historical data. Please send all comments or questions to LNG@platts.com and pricegroup@platts.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