SUBSCRIBER NOTE: Platts to launch LNG FOB Gulf Coast Marker (GCM) assessment standard terms

S&P Global Platts will further define the terms that form the basis of its spot LNG price assessment for US spot export cargoes, the FOB Gulf Coast Marker (GCM), with effect from November 1, 2019.

These terms will form the basis of the GCM assessment process based on consultation with market participants active in the trading of US-origin LNG cargoes. Platts will continue to consider cargoes with differing terms the GCM standard, but may normalize where appropriate back to the GCM base specification as defined below.

Platts may also consider for publication in its Atlantic assessment process, which concludes at 4:30pm London time FOB USGC bids, offers and expressions of interest to trade, which may also be considered later in the GCM assessment process which concludes at 1:30pm Houston time.

Full specifications for the GCM can be found here: http://plts.co/l9wV30pOTlD STANDARD TERMS: These terms will also apply to any bids, offers or expressions of interest to trade reported to Platts in the Market on Close (MOC) assessment process that underpins GCM. Unless otherwise stated by the 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 for cargoes loaded in the US Gulf Coast. 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. Market participants should clearly state in submitted bids or offers terms that differ from these standards.

DELIVERY WINDOW: The loading period reflected in bids, offers and trades should typically be three to five days long, with the seller to narrow to a one-day loading window 30 days before the first day of the traded delivery window.

LOADING LOCATION: Bids, offers and trades should typically reflect loading in US Gulf Coast ports. Offers must be expressed with a specific base load port. The base load port chosen sets the conditions for any potential counterparty considering trading.

Sellers will retain the option to substitute loading port in the US Gulf Coast up to a reasonable period before the first day of the traded loading window, subject to ship shore compatibility study (SSCS). Substitution of delivery locations to ports outside of the US Gulf Coast may be subject to normalization, and the option would need to be stated in the bid or offer.

QUALITY: Market participants should clearly state GHV specifications in bids and offers submitted for publication. GCM will reflect cargoes with a GHV of 1,010-1,050 Btu/Scf. Platts may normalize for quality specifications with different ranges.

QUANTITY: GCM will reflect a cargo quantity of 3.5 TBtu. This volume will be subject to +/-2% operational tolerance, at the seller's option. Platts will continue to consider different cargo volumes, but may normalize where appropriate back to 3.5TBtu +/-2% operational tolerance.

LNG VESSEL: Buyers will nominate an LNG ship 30 days prior to the first day of the traded delivery window, or at the time of trade confirmation for more prompt delivery windows. For cargoes for delivery at or less than 30 days from the date of assessment, buyers should state the LNG vessel explicitly in the bid. Buyers may substitute delivery vessel up to 15 days prior to the first day of the traded delivery window, subject to SSCS.

Platts expects parties to be reasonable when exceptional circumstances require buyers to substitute vessels or sellers to substitute terminals beyond typical standards stated in Platts 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 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.