Platts clarifies consideration of floating price physical information in global LNG assessments

Platts, part of S&P Global Commodity Insights, would like to clarify the consideration of floating physical bids, offers and trades reported during the Platts Market on Close assessment process for its global LNG price assessment process.

Floating price physical information may not be fully taken into consideration for the assessment process, normalized or may be excluded from the assessment process altogether, for reasons including timing, location and other factors, including linkage to benchmark bases that are not seen as typical relative to the market.

This follows industry feedback and recent observed changes in spot trading practices across various regions.

Pricing bases with infrequent usage may differ in value from the typical and commonly observable information in the market.

Platts is aware that market participants continue to use a variety of substitute base pricing for the trading of LNG cargoes in different markets and geographies.

It is also aware that the usage of such substitute bases may change depending on market circumstances.

Benchmark bases considered typical for one region may not be commonly used in another region.

Similarly, benchmarks that may be used in longer term contracts may rarely appear in spot cargo pricing.

Platts will evaluate the considerations of different markets when exercising judgment around which benchmark bases are deemed typical for LNG cargo price assessments in different regions.

This clarification applies to bids, offers and trades reported in the LNG MOC process for the Platts JKM, WIM, MEM, NWE, MED and GCM price assessments.

Please send all feedback, comments, or 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 to the public upon request.