Platts corrects Oct 6 JKM LNG assessment rationale

Platts, part of S&P Global Commodity Insights, has corrected the Oct. 6 rationale for the Platts LNG JKM assessment.

The rationale should read as follows:

The Platts JKM for November was assessed at $32.503/MMBtu Oct. 6. Platts assessed the first half of November at $31.675/MMBtu and the second half of November at $33.331/MMBtu, with a wider $1.656/ MMBtu intramonth contango structure Oct. 6, compared with $1.650/MMBtu Oct. 5.

The H1 November and H2 November physical assessments were based on an adjusted relationship between the physical November and JKM December derivatives markets of a $4.500/MMBtu discount and a $2.844/MMBtu discount to JKM December derivatives, respectively.

During the physical Platts Market on Close assessment process, Shell reported a bid for Dec. 24-28 delivery at ICE TTF December minus $16.6/MMBtu, which was normalized down 10 cents/MMBtu on a larger minimum ship size. Shell's bid equated to a fixed price of $37.975/MMBtu. The value for Dec. 26 was assessed at $37.985/MMBtu, above Shell's bid.

During the Platts derivatives MOC process, Dare reported the most competitive bid for 25 lots of the November JKM derivatives contract at $34.95/MMBtu, while the same entity also offered the most competitive offer (25 lots) at $38.70/MMBtu. Platts assessed November JKM derivatives at $35.85/MMBtu at the Asian close.

For December JKM derivatives, Dare bid 25 lots at $35.50/MMBtu and reported an offer (25 lots) at $40.60/MMBtu. December JKM derivatives were assessed at $36.175/MMBtu at the Asian close. This rationale applies to symbol(s) AAOVQ00 Exclusions: No market data was excluded from the assessment.