S&P Global to publish JKM-based China trucked LNG prices from May 17

S&P Global Commodity Insights will begin publishing calculated daily trucked LNG prices for northern, eastern and southern China based on the Platts Japan/Korea Marker (JKM) assessment from May 17.

The new prices will reflect the import parity value of trucked LNG in the North, East and South regions of China for future delivery, and will complement the existing suite of Platts LNG assessments.

The new China trucked LNG prices will be calculated based on the daily Platts JKM assessment (AAOVQ00) plus the costs of prevailing value added tax and terminal tolling fees at the Tianjin floating storage and regasification unit for North China, Ningbo terminal in East China, and Beihai terminal in South China. S&P Global understands there is currently no import tariff levied on LNG imports.

S&P Global will also publish an average trucked LNG price of the three regions.

The new China LNG trucked prices will be published in both Yuan/mt and $/MMBtu, using the daily USD/CNY exchange rate (AAWFW00) at 4:30 pm Singapore time, as well as a conversion factor of 1 MMBtu = 0.019231 mt, which is equivalent to 1 mt = 52 MMBtu. They will follow the Singapore publishing schedule.

The forward period reflected by the new China trucked LNG prices will match that of Platts JKM assessment. For example, between May 17, 2022 to June 15, 2022, the new assessments will reflect China trucked LNG prices for July 2022.

It is worth noting that trucked LNG trade takes place on a much prompter time horizon, so these calculated assessments will give market participants insight on forward pricing available to market participants for later delivery.

The calculations will be periodically reviewed to ensure the inputs reflect prevailing market dynamics.

Please send any questions, comments, or feedback to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com.

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