Platts to launch DES Southeast Asia LNG (SEAM) cargo assessments Oct 16

Platts, part of S&P Global Commodity Insights, will launch DES Southeast Asia (SEAM) price assessments reflecting the value of spot LNG cargoes delivered into Southeast Asia, effective Oct. 16, 2023.

Platts will publish the assessments as a differential to Platts JKM as well as on an outright basis. Southeast Asian LNG imports have grown significantly over the last two years and are expected to grow further as new importing countries enter the market.

BASIS AND LOCATION: Cargoes delivered ex-ship (DES) to ports in Thailand will be considered as the basis of the assessment. Prices of LNG spot cargoes delivered into ports in Singapore, the Philippines or Vietnam may be normalized.

TIMING: Platts will assess cargoes for delivery in the third, fourth, fifth and sixth half-month cycles forward from the date of publication. The SEAM monthly assessment will be based on the average of the two DES Southeast Asia LNG half months that match the JKM delivery month period.

Bids and offers provided for publication during the Platts Market on Close assessment process from S&P Global will typically reflect delivery into ports in Thailand, with buyer's option to nominate discharge port.

Bids must be expressed with a specific base discharge port. The location chosen will set the conditions for any potential counterparty considering trading. For transactions concluded and reported through the MOC, buyers should nominate a base discharge port at least 30 days before the first day of the traded delivery window, or at the time of trade confirmation for a prompter delivery window.

Buyers will retain the option to substitute discharge port within Thailand up to 15 days before the first day of the traded delivery window, subject to ship shore compatibility study (SSCS).

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

LOADING LOCATION: Platts will reflect bids, offers and trades where sellers have the option to nominate the base loading port and may substitute loading port up to 30 days prior to the first day of the traded delivery window subject to the Gross Heating Value (GHV) quality range reported in the trade. Offers of cargoes for delivery at or less than 30 days from the date of assessment will have to state a base loading port explicitly.

QUALITY: Market participants should clearly state GHV specifications in bids and offers submitted for publication. Platts DES Southeast Asia assessments will reflect cargoes with a GHV of 1,000-1,150 Btu/Scf. Platts may normalize information with other ranges for quality.

QUANTITY: DES Southeast Asia assessments will reflect quantity of 3.4 TBtu. This volume will be subject to plus/minus 5% operational tolerance, at the seller's option.

For cargoes offered or bid for in a volume range (e.g. 3.3-3.5 TBtu plus/minus 5%), the specific volume (e.g. 3.4 TBtu plus/minus 5%) will have to be declared by the seller 30 days prior to delivery.

LNG SHIP: Platts standards will reflect LNG ship sizes of above 135,000 cu m. Sellers will nominate an LNG ship either 30 days prior to the first day of the traded delivery window, or at the time of trade confirmation for a prompter delivery window.

For offers of cargoes for delivery at or less than 30 days from the date of assessment, sellers should state the LNG ship explicitly. Sellers may substitute delivery ship up to 30 days prior to the first day of the traded delivery window, subject to SSCS.

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 standards, which Platts understands to be broadly typical in the spot market for cargoes delivered into Southeast Asia.

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 should clearly state in submitted bids or offers terms that differ from these standards.

Platts first proposed to launch these assessments Aug. 25 via a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/082523-platts-proposes-launch-of-des-southeast-asia-lng-seam-cargo-assessments

Please send all feedback, comments, and questions 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.