Platts launches JKM-based China trucked LNG prices

Platts, part of S&P Global Commodity Insights, has begun publishing calculated daily trucked LNG prices for northern, eastern, and southern China based on the Platts Japan/Korea Marker (JKM) assessment on May 17, 2022.

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

The China trucked LNG prices are 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. Platts understands there is currently no import tariff levied on LNG imports.

Platts also publishes an average trucked LNG price of the three regions.

The China LNG trucked prices are 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.

The new assessments are published in Platts LNG Daily, Platts LNG Alert fixed page 0200, and under the following price database codes:

The forward period reflected by the new China trucked LNG prices matches that of Platts JKM assessment. For example, between May 17, 2022 to June 15, 2022, the new assessments 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 give market participants insight on forward pricing available to market participants for later delivery.

The calculations are 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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