SUBSCRIBER NOTE: Platts updates MOC guidelines for JKM LNG assessments

S&P Global Platts is updating guidelines for its Market on Close assessment process for LNG in Asia, including its benchmark JKM assessments. The guidelines are aimed at bringing greater clarity and transparency to the assessment process used in assessing the benchmark JKM prices. Besides information published in the MOC, Platts editors also engage directly with producers, consumers, traders, brokers and shippers to gather price information. Platts will publish bids, offers and interest to trade from approved participants in the JKM MOC process in line with the following editorial standards and guidelines. For more information on the counterparty review process, please visit https://www.platts.com/market-on-close. Entities that wish to participate in the MOC should contact pricegroup@spglobal.com. Timing and Increments: Buyers and sellers must submit any bids and offers with complete information to Platts editors by phone, instant-message or email before 16:00 Singapore time or 08:00 GMT. Only bids and offers that are raised or lowered in realistic increments are considered within the assessment. Counterparties can improve the price of their published bids and offers by up to 5 cents/MMBtu every minute. No price changes are allowed in the final minute of the MOC that concludes at 16:30 Singapore time or 08:30 GMT. Buyers and sellers may withdraw their bids or offers at any time during the MOC by communicating the same to Platts editors. Counterparties must clearly communicate their interest to trade a published bid or offer to Platts editors. Platts MOC guidelines are a key component of its assessment methodology, essential to an orderly and transparent price discovery process. Volume and Location: The current standard ship and cargo size is defined as 135,000-175,000 cubic meters. Platts will publish bids and offers for minimum cargo size of 135,000 cu m. Bids, offers for cargoes delivered ex-ship (DES) to ports in Japan, South Korea, mainland China and Taiwan that can receive a minimum cargo size of 135,000 cum are considered in the assessment process. Deals, bids and offers to contain information on: Seller, Buyer, Delivery Terms (Port location and Incoterm), Delivery Window, Quantity (in MMBtu, Metric Tonnes or Cubic Meters), Quality (in Btu/scf), Price (in $/MMBtu), Credit Terms and Other Terms. Example format: Asia LNG: Buyer 1 bids one port DES Japan/South Korea/China/Taiwan, for delivery December 10-14, 2018, 155,000 cu m, 1080 Btu/scf, at $8/MMBtu. GT&Cs: Counterparties are expected to perform on trades reported in the MOC based on typical GT&Cs and credit terms that have been applied and accepted by both counterparties in the open market. If an offer is lifted by a buyer during the Platts MOC process, Platts would expect typical GT&Cs and credit terms between both parties to be applicable, even where the GT&Cs and credit terms stated in the originally published offer may differ, if the companies have not conventionally performed on the published terms.

For more information on Platts JKM LNG benchmark prices and how they are assessed, please visit: https://www.platts.com/price-assessments/natural-gas/jkm-japan-korea-marker. Information on LNG MOC bids, offers and trades can be seen on https://lng-moc.plattslabs.io, and on Page 700 of Platts Natural Gas Alert(NGA), and can be submitted to Platts editors via platts_lng_moc@spglobal.com, ICE Chat: Platts_asia_lng, or +65 6530 6417. Please send any feedback or questions to platts_lng_moc@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.