Platts clarifies assessment process of inter-month structure for Asian LNG prices

S&P Global Platts is clarifying the assessment process of inter-month market structure in its LNG prices in Asia, including the JKM, WIM and MEM assessments, effective September 16, 2020.

Platts will take into consideration the inter-month market structure for price indications of adjacent half-month cycles that fall outside the JKM pricing month in its assessment process.

Prior to this clarification, Platts had largely considered an intra-month market structure within the JKM pricing month.

For instance, on September 16, Platts will assess DES cargoes for delivery in H2 October, H1 November, H2 November and H1 December in the case of the JKM.

Platts will take into consideration the inter-month market structure between H2 October and H1 November, as well as between H2 November and H1 December in its assessment process.

This is in addition to the intra-month structure assessed between H1 November and H2 November.

This clarification applies to bids, offers and trades published during the Market on Close (MOC) assessment process. This follows observations and industry feedback stating that the market generally follows an inter-month structure for standard cargo trade.

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