SUBSCRIBER NOTE: Platts proposes to normalize JKM to delivery Tokyo Bay

S&P Global Platts is seeking feedback on its proposal to normalize the basis location of JKM to Tokyo Bay, Japan. Platts JKM (AAOVQ00) is the LNG benchmark price for spot physical cargoes referenced in contracts both in northeast Asia and globally.

The JKM assessment will continue to reflect cargoes delivered into Japan, Korea, Taiwan and China, with these cargoes normalized to basis location Tokyo Bay, using a freight deviation cost. Platts is making this proposal to increase the specificity of JKM as LNG pricing evolves to become more precise. Tokyo Bay is one of the world's busiest LNG ports with large volumes of LNG regasification capacity.

Platts is proposing to implement these changes to the current JKM methodology from September 18, 2017.

Platts continues to invite any comments or feedback to LNGeditorialteam@spglobal.com and copied to pricemethodology@spglobal.com by July 24 2017.

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.