Platts to launch DES JKM/NWE LNG spread, extend JKM, NWE derivative assessments on Dec. 1

Platts, part of S&P Global Commodity Insights, will begin publishing DES JKM/Northwest Europe LNG spread assessments, and extend the assessment of its DES JKM and DES NWE derivatives at the close of London trade (4:30 pm) from Dec. 1, 2022.

The launch of these daily derivative spreads follows the listing of the Platts North West Europe Marker (NWM) contract on CME, and observed NWM trades against JKM and continued market activity on this basis. CME's NWM contract settles against the monthly average of Platts DES Northwest Europe Marker (symbol: AASXU00).

Platts will publish 11 monthly spreads between Platts JKM and Platts DES NWE LNG derivative assessments, with the first assessment aligning with the pricing month of the benchmark physical assessment.

They will roll on the 16th of each calendar month unless that day is not a business day, in which case the price assessments roll on the following business day.

For example, on Dec. 1, 2022, the M1 spread will reflect January DES JKM/January DES NWE derivatives and M11 spread will reflect November DES JKM/November DES NWE derivatives. On Dec. 16, 2022, the M1 spread will reflect February DES JKM/February DES NWE derivatives, and M11 spread will reflect December DES JKM/December NWE derivatives.

Platts will also publish DES JKM/DES NWE derivative spread assessments for two quarters beyond the active forward quarter, and two seasons beyond the active forward season.

To provide greater transparency, Platts will start publishing the full suite of outright DES JKM and DES NWE derivative assessments corresponding to the new DES JKM/DES NWE spread assessments from Dec. 1, 2022.

These derivative assessments settle against the monthly average of Platts physical JKM and DES NWE LNG Marker assessments.

Platts will take into consideration the latest information sourced from the market up to the close of the Platts Market on Close assessment process at 4:30 pm London time for the new derivative assessments, and the assessments will follow the London publishing schedule.

The assessments will be published in $/MMBtu.

Full details of the existing Platts DES NWE LNG assessments can be found in the Global LNG Specifications Guide: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_lng.pdf.

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

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Platts will consider all comments received and will make comments not marked as confidential available upon request.