SUBSCRIBER NOTE: Platts updates guidelines for LNG MOC process

Following continued and broad market feedback, S&P Global Platts has refined and standardized the trading terms considered to be typical for the publication of bids, offers and other transactional data for spot LNG cargoes reflected in its benchmark JKM LNG price assessments with effect from September 17, 2018.

These standardizations would apply to bids, offers and trades to be published by Platts in the Market on Close price assessment process. They do not change the specifications reflected in the JKM assessments, which remain as published in Platts methodology & specification guide, available online here: www.spglobal.com STANDARD TERMS: Unless stated otherwise by a counterparty at the time of providing data for publication, the bids and offers provided for publication in the MOC should reflect these following standards, which Platts understands to be broadly typical in the spot market. Platts may publish bids, offers and trades for LNG cargoes that carry different terms and conditions, but may normalize these when considered in final, published assessments. Participants in the MOC process should clearly state in submitted bids or offers terms that differ from these standards.

DELIVERY WINDOW: The delivery period reflected by bids and offers should typically be three to five days long, with the buyer to narrow to a one-or two-day delivery window 30 days before the first day of the traded laycan.

DISCHARGE LOCATION: Bids and offers should typically reflect delivery into Japan, South Korea, Taiwan and China, with buyer's option to nominate discharge country and port. Bids and offers may be expressed with a specific discharge basis (or base) port. The location chosen sets the conditions for any potential counterparty considering trading. For transactions concluded and reported through the MOC process, buyers should nominate delivery port at least 30 days before the first day of the traded laycan, or at the time of trade confirmation for more prompt laycans. Buyers would retain the option to substitute delivery port within the same country up to 20 days before the first day of the traded laycan, subject to ship shore compatibility study.

LOADING LOCATION: Platts would reflect bids, offers and trades where sellers have the option to nominate the loading port and may substitute loading port up to30 days prior to the first day of the traded laycan subject to Gross Heating Value (GHV) quality range reported in the trade.

QUALITY: Market participants should clearly state GHV specifications in bids and offers submitted for publication. Platts JKM assessments reflect cargoes with a GHV of 1030-1130 Btu/Scf. Platts may normalize for quality specifications with different ranges.

QUANTITY: Market participants should state a specific volume in the range 3.2 TBtu to 3.6 TBtu in bids and offers. This volume should be subject to +/-5% operational tolerance, at the seller's option. For example, a buyer can bid for 3.3 TBtu with +/-5% operational tolerance, at the seller's option.

LNG VESSEL: Platts standards would continue to reflect published JKM LNG vessel size range of 135,000-175,000m3. Sellers should nominate an LNG ship either 45 days prior to the first day of the traded laycan, or at the time of trade confirmation for more prompt laycans. Sellers may substitute delivery vessel up to30 days prior to the first day of the trade laycan subject to ship shore compatibility study. 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. And buyers or sellers should not unreasonably withhold substitutions or hamper the established delivery process.

Please send all feedback, comments and questions to platts_lng_moc@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.