S&P Global clarifies position on merchantability of Russia-origin LNG into Mediterranean

S&P Global Commodity Insights is clarifying that its Platts DES Mediterranean (MED) LNG price assessment solely reflects merchantable material.

Due to recent observed changes in buying practices in the LNG cargo markets, S&P Global considers that Russia-origin LNG is not presently merchantable on the same basis as other production origins.

Consequently, until this situation changes, bids, offers and trades reported in the Platts LNG Atlantic Market on Close assessment process for the DES Med assessment do not reflect Russia-origin LNG.

The Platts DES MED assessment reflects delivery into all ports in the Iberian Peninsula and Fos Cavaou as the basis location.

This follows similar guidance published March 14, 2022, for Russia-origin cargo deliveries in Northwest Europe: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/031422-s-p-global-clarifies-position-on-merchantability-of-russia-origin-lng-into-northwest-europe.

Additionally, further information on S&P Global's consideration of merchantability can be found in the following subscriber note, published March 2, 2022: https://www.spglobal.com/commodity-insights/en/our-methodology/subscriber-notes/030222-further-guidance-on-sanctions-embargoed-material-in-s-p-global-commodity-insights-platts-price-assessment-processes.

Please send all feedback, comments or questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by S&P Global for public viewing. S&P Global will consider all comments received and will make comments not marked as confidential available to the public upon request.