Platts clarifies delivery vessel compatibility for Asia LNG MOC

S&P Global Platts is clarifying its guidelines regarding delivery vessel compatibility for cargoes reflected in its Market on Close assessment process for LNG in Asia.

For a bid submitted for publication during the MOC process, compatibility of the base delivery vessel is required. Similarly, for an offer submitted for publication during the MOC process, compatibility of the base discharge port is required should the base vessel be named.

All delivery vessels are subject to ship shore compatibility studies (SSCS), in line with standard market practices. Platts will not publish bids, offers and trades requiring delivery vessels to be already compatible or already SSC compatible with discharge ports.

For offers without a named base vessel for deliveries more than 45 days forward from the date of publication, the seller should nominate a vessel no later than 45 days prior to the first day of the traded delivery window.

Platts expects parties to be reasonable when exceptional circumstances require sellers to substitute vessels or buyers to substitute terminals beyond typical standards stated in Platts MOC guidelines.

Companies must promptly communicate to their counterparties when such a substitution is required. Buyers or sellers should not unreasonably withhold substitutions or hamper the established delivery process.

This clarification follows market feedback indicating that standard market practices already exist to ensure compatibility between base vessels and discharge ports in trade performance.

Information published in the Platts Asia LNG MOC process is taken into consideration for the JKM, WIM and MEM price assessment process.

Platts invites all questions and feedback to LNGeditorialteam@spglobal.com and pricegroup@spglobal.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.