Platts proposes to stop publishing pricing information with cross-month delivery periods in Asia-Pacific LNG MOC

Platts, part of S&P Global Commodity Insights, is proposing to stop publishing bids and offers for cargoes with delivery periods that straddle across two calendar months, and bids with a two-day delivery period that fall in the last two days of a calendar month in the Asia-Pacific LNG Platts Market on Close assessment process, effective June 18, to align with standard market practice.

The assessments affected include Platts JKM, WIM, SEAM and MEM.

The price information published during the MOC over the past two years has shown a clear trend in which an overwhelming majority of bids and offers of delivered ex-ship cargoes in the Asia-Pacific region have the start and end dates of their delivery periods fall within the same calendar month.

Currently, cargoes with cross-month delivery periods are rare; bids and offers with such cross-month delivery periods may be subject to normalization when considered in the final price assessment.

By the same logic, Platts is proposing to stop publishing bids with a two-day delivery period that fall in the last two days of a calendar month. Such bids may be restrictive, as standard delivery windows are typically three days long, and therefore potential sellers that wish to lift such bids may need to procure cargoes from the spot market with a three-day delivery period that would straddle across two calendar months. As an example, to lift a bid with a delivery window of May 30-31, a potential seller may need to buy from the spot market a cargo with a cross-month delivery window of May 30-June 1, and such cargoes are rare.

Please send all feedback, comments and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by May 17.

For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make those not marked as confidential available upon request.