Platts launches DES Southeast Asia LNG (SEAM) cargo assessments

Platts, part of S&P Global Commodity Insights, has launched DES Southeast Asia (SEAM) price assessments reflecting the value of spot LNG cargoes delivered into Southeast Asia, effective Oct. 23, 2023.

Platts publishes 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 are 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 assesses cargoes for delivery in the third, fourth, fifth and sixth half-month cycles forward from the date of publication. The SEAM monthly assessment is 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 in the Market on Close process typically reflect delivery into ports in Thailand, with the buyer's option to nominate a discharge port.

Bids must be expressed with a specific base discharge 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 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 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 is typically three days long, with the buyer's option to narrow to a one-day delivery window by 30 days before the first day of the traded delivery window.

LOADING LOCATION: Platts reflects bids, offers and trades where sellers have the option to nominate the base loading port and may substitute the 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 must state a final load port explicitly. Offers of cargoes for delivery at or less than 45 days from the date of assessment must 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 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 reflect a quantity of 3.4 TBtu. This volume is 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%) has to be declared by the seller 30 days prior to delivery.

LNG VESSEL: Platts standards reflect an LNG vessel size of above 135,000 cubic meters. Sellers 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 vessel explicitly. Sellers may substitute delivery vessels 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 process 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 process should clearly state in submitted bids or offers terms that differ from these standards.

The assessment is published in Platts LNG Daily, and Platts LNG Alert pages LNG2840, LNG2841, LNG2842, PGN1030 and PGN1054 under the following price database codes:

Platts first proposed to launch these assessments on 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

Due to technical issues, the launch date was postponed from Oct. 16 to Oct. 23, as communicated via a subscriber note available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/101623-platts-to-delay-launch-of-des-southeast-asia-lng-seam-cargo-assessments-to-oct-23

Please send all feedback, comments, and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com.

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