Platts proposes to change timing and increment guidelines for Global LNG MOC

Platts, part of S&P Global Commodity Insights, is proposing to change the timing and increment guidelines for its Asia-Pacific and Atlantic LNG Market on Close assessment processes, effective July 17.

For the APAC MOC, Platts proposes to allow a maximum price move of 5 cents/MMBtu per 30 seconds for bids and offers submitted through the Platts Editorial Window, or eWindow, communication tool and through a Platts editor manually for the Asia LNG physical MOC process, and a maximum price move of 10 cents/MMBtu per 20 seconds for bids and offers submitted through the eWindow communication tool and 10 cents/MMBtu per 30 seconds for bids and offers submitted through a Platts editor manually for the Asia LNG derivatives MOC process.

Platts is also proposing to change the final state for the Asia LNG physical MOC process to start from 16:29:30 Singapore time for both the eWindow and manual MOC environment, and the final state for the Asia LNG derivatives MOC process to start from 16:29:30 for the manual MOC environment. Platts is proposing to remove the final state from the Asia LNG derivatives MOC process for the eWindow MOC environment.

The maximum time allowed for participants to repeat a bid or offer for Asia LNG physical MOC would be shortened to 30 seconds from the current guideline of 60 seconds following a trade, while the maximum time allowed for participants to repeat a bid or offer for Asia LNG derivatives MOC following a trade would be shortened to 20 seconds, from 30 seconds currently.

Following a trade, an extension of the MOC process would be triggered by a rebid or re-offer between 16:29:30 and 16:30:00 Singapore time for Asia LNG physical, and between 16:29:40 and 16:30:00 Singapore time for Asia LNG derivatives. An extension in the Asia LNG derivatives MOC would be triggered if a price is changed in the last 20 seconds, or between 16:29:40 and 16:30:00, in the eWindow MOC environment.

The extension period would remain unchanged, lasting for one minute until 16:31:00 Singapore time for both Asia LNG physical and derivatives in order to adequately test that bid or offer.

Under Platts existing timing and increment guidelines, bids and offers for Asia LNG physical submitted directly through the eWindow tool and through a Platts editor can improve by up to 5 cents/MMBtu per 60 seconds, with final state at 16:29:00 Singapore time, whereas bids and offers for Asia LNG derivatives submitted directly through the eWindow tool can improve by up to 5 cents/MMBtu per 30 seconds, and through a Platts editor can improve by up to 5 cents/MMBtu per 60 seconds, in the Asia LNG derivatives MOC process, with final state at 16:29:30 Singapore time.

The increments have been amended to a maximum of 20 cents/MMBtu every 20 seconds for Asia LNG derivatives and to a maximum of 5 cents/MMBtu every 20 seconds for Asia LNG physical since September 6, 2022, in a subscriber note available here https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/090622-asia-lng-physical-platts-market-on-close-incrementability-changes-sept-6, until further notice, to reflect the current volatility in the market due to European gas market price movements.

For the Atlantic MOC, Platts proposes to allow a maximum price move of 5 cents/MMBtu per 30 seconds for bids and offers submitted through the eWindow communication tool and through a Platts editor for the Atlantic LNG physical MOC process. The maximum price move would remain the same at 10 cents/MMBtu per 60 seconds for bids and offers submitted through a Platts editor for the Atlantic LNG derivatives MOC process.

Platts is also proposing to change the final state for the Atlantic LNG physical MOC process to start from 16:29:30 London time for both the eWindow and manual MOC environment.

The maximum time allowed for participants to repeat a bid or offer for Atlantic LNG physical would be shortened to 30 seconds from the current guideline of 60 seconds following a trade.

Following a trade, an extension of the MOC process would be triggered by a rebid or re-offer between 16:29:30 and 16:30:00 London time, instead of between 16:28:00 and 16:30:00 London time, for Atlantic LNG physical.

The duration of the extension period would shorten from two minutes to one minute, until 16:31:00 London time, for Atlantic LNG physical in order to adequately test that bid or offer.

For the Atlantic LNG derivatives MOC, a bid or offer is published by a Platts editor manually currently. The timing and increment guidelines for the Atlantic LNG derivatives MOC process would remain unchanged.

The proposed changes would apply to bids and offers submitted by market participants for the Platts JKM, WIM, MEM, NWE, MED and GCM assessments directly through the eWindow communication tool and through a Platts editor who would then publish bids and offers using the software.

The following table summarizes the proposed changes on eWindow.

Platts has established clearly defined timing and increment guidelines that apply when publishing bids and offers in the MOC process, in order to ensure an orderly and transparent price assessment process.

Guidelines for the publication of bids and offers in the MOC process are available in the Platts LNG Timing and Increment Guide, available here: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/lng/lng-timing-and-increment-guidelines. Please send all comments, feedback and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by June 14, 2023.

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.