SUBSCRIBER NOTE: Platts to launch US LNG Gulf Coast Marker (GCM)

Following an earlier announcement, S&P Global Platts has made a decision to launch the LNG Gulf Coast Marker (GCM), a daily LNG assessment reflecting the value of spot LNG exported from the US Gulf Coast, on a FOB basis, expressed in US$/MMBtu and published in Platts LNG Daily and Natural Gas Alert pages 1034 from 16 June, 2016.

Platts will consider data for assessment purposes which includes but is not limited to: spot market transactions, bids and offers on a FOB US basis normalized to the US Gulf Coast. This may include terminals on the US Atlantic Coast when fully commissioned and reloads. Platts will also consider freight netback values of DES assessments and normalized natural gas hub values at centers of consumption, on the same day, such as Northwest Europe and Northeast Asia. The freight value used will reflect the most economic route.

The assessment will reflect lean and rich gas, shipped in volumes of 135,000-175,000 cu m for delivery of cargoes loading in the second, third and fourth half-month cycles forward from the date of trade. The Platts GCM assessment represents the average of the two half-month cycles which comprise the first full month of loading, which rolls over on the 1st and 16th of each calendar month unless that day is not a business day, in which case it rolls over on the next business day.

When a netback calculation using the most economic route is used as the basis for the assessment, it will reflect the most economical route at the time of publication. Navigation options include the Suez Canal or the Cape of Good Hope and could eventually include the Panama Canal. As such Platts will database and intends to publish all these options in market data category 'LF' and on NGA page 1025. Platts currently estimates the initial cost of transiting via the Panama Canal at 18 cents/MMBtu. The bunker fuel basis for these routes will be Houston.

The standard shipping assumptions will be aligned with existing methodology for freight route costs as follows: average speed 17 knots, vessel size 155,000-180,000 cu m, fillable volume of 98.5%, fuel oil consumption 100 mt/day of IFO380 CST and a boil-off gas factor of 0.12% when laden and 0.09% when on ballast. Heel will be calculated as 0.09% natural boil off while on ballast, multiplied by the number of days of the return leg plus 36 hours.

Please send all questions and feedback to LNGeditorialteam@platts.com and copied to pricemethodology@platts.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.