05 Jul 2023 | 13:29 UTC

Platts proposes changes to Atlantic LNG standard terms

Platts, part of S&P Global Commodity Insights, is proposing to update the standard terms reflected in its daily Northwest Europe and Mediterranean LNG price assessments, effective Sept. 1.

The proposals are in line with industry feedback and observed changes in trading patterns and norms.

The changes to the following terms are as follows:

Term

Current Standard

Proposed Standard

Delivery Window

Three to five days long, with the buyer to narrow to a one- or two-day delivery window up to 30 days prior to the first day of the traded delivery window

Three days long, with the buyer to narrow to one-day delivery window up to 20 days prior to the first day of the initial delivery window

NWE Discharge location

Bilbao, Isle of Grain, Zeebrugge, Gate LNG, Dragon LNG, Montoir, Mugardos, South Hook and Dunkirk

Bilbao, Brunsbuttel, Dragon LNG, Dunkirk, Eemshaven, Gate LNG, Isle of Grain, Montoir, Mugardos, South Hook, Wilhelmshaven and Zeebrugge

Disport nomination

Buyer to nominate base delivery port at least 30 days prior to delivery. The buyer should retain the option to substitute discharge port up to 20 days prior, subject to SSCS

Buyer to nominate base delivery port at least 30 days prior to delivery. The buyer should retain the option to substitute discharge port up to 15 days prior, subject to SSCS

Loadport nomination

Sellers to nominate the loading port up to 20 days prior to the first day of the traded delivery window subject to the stated (GHV) quality range.

Sellers to nominate the loading port up to 15 days prior to the first day of the traded delivery window subject to the stated (GHV) quality range.

Vessel substitution

Seller to nominate the LNG carrier up to 20 days prior to delivery.

Seller to nominate the LNG carrier up to 15 days prior to delivery.

Operational tolerance

Plus/minus 5% at the seller's option

Plus/minus 3% at the seller's option

Current standards around GHV, specification, base quantities of 3.5 Tbtu in NWE and 3.3 TBtu in the Mediterranean, publishing standards regarding 0.3 TBtu quantity ranges on offers, would remain unchanged.

Platts will continue to consider bids, offers and trades outside of the standard terms for publication and review for normalization.

Please send feedback and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by July 24.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

To see this note and others, please go to https://www.spglobal.com/commodity-insights/en/our-methodology/subscriber-notes.