Platts proposes change to JKM LNG cargo quantity standard specification

Platts, part of S&P Global Commodity Insights, is proposing a change to the standard cargo quantity specification reflected in the methodology for its JKM LNG benchmark and JKM Forwards price assessments, effective Feb. 16, 2026.

Under this proposal, the Platts JKM assessment would reflect a standard cargo quantity range of 3.3-3.5 TBtu +/- 5% operational tolerance at the seller's option, compared with the current standard of 3.4 TBtu +/- 5% operational tolerance at the seller's option.

Quantity ranges other than 3.3-3.5 TBtu and discrete quantities might be considered and normalized to this standard for assessment purposes, but the maximum range stated in offers would be no greater than 0.3 TBtu.

This proposal is being initiated following a consultation that commenced on Aug. 26.

The proposal and consultation are based on market feedback that the most commonly traded cargo quantity in the Asia-Pacific spot market has evolved in recent years due to the rise of portfolio-based trading, diversification of supply origins and greater flexibility within destination markets in Northeast Asia.

For bids, offers and trades submitted in a volume range, the seller would retain the option to declare the discrete volume latest by 30 days prior to the initial delivery window.

Accordingly, Platts is proposing that bids, offers and trades with delivery windows prompter than 30 days from the assessment date would continue to reflect a standard cargo quantity of 3.4 TBtu. Other quantities might be considered and normalized to this standard for assessment purposes. However, Platts would not publish any prompt offer with a quantity range.

JKM Forwards

Furthermore, Platts proposes that the standard deliverable cargo volume stemming from a convergence of JKM Forwards trades would be 3.3-3.5TBtu +/- 5% operational tolerance at the seller's option range, in line with the proposed JKM standard cargo volume, compared with the current standard of 3.4 TBtu +/- 5% operational tolerance at the seller's option.

The converged cargo would continue to be priced on a $/MMBtu basis at the arithmetic mean of the 10 JKM Forwards (of 340,000 MMBtu each) that make up the converged cargo.

Platts would also continue to reflect trades in which any outstanding front-month JKM Forwards that amount to less than 3.4 TBtu by the 15th of the month, or the nearest prior business day if the 15th is a holiday, are cash settled.

Please send all feedback to lngeditorialteam@spglobal.com and pricegroup@spglobal.com by Dec. 22.

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.