Platts launches new basis & delivery window for DES Brazil LNG assessment

S&P Global Platts has launched the new freight netforward basis for its delivered-exship (DES) Brazil LNG assessment to the US Gulf Coast from the East Atlantic, effective June 3, 2019.

This change was first proposed in a subscriber note published March 7:

https://www.spglobal.com/platts/en/our-methodology/subscriber-notes/030719-platts-proposes-to-change-basis-amp-delivery-window-of-des-brazil-lng-assessment

As a result of this change, Platts has made the Gulf Coast Marker (GCM – LGCSM01) the basis of the netforward, rather than the East Atlantic Marker (EAM – LEAMT00) to reflect the increase in output from the US and its increased flows to Latin America. The calculation for the netforward will be GCM plus freight to arrive at the DES Brazil assessment, which is basis Salvador de Bahia.

Also from June 3, 2019 the delivery window reflected in the DES Brazil assessment has changed to mirror the delivery windows reflected in other Platts DES LNG assessments. In other words, the month reflected would roll on the 16th of the month, or nearest business day after the 16th, to the following whole month. An example to illustrate this: from February 16 – March 15 the DES Brazil assessment will reflect April deliveries; from March 16 – April 15 the assessment will reflect May deliveries.

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