Platts proposes launch of DES Latin America LNG cargo assessments

Platts, part of S&P Global Commodity Insights, is proposing to launch DES Latin America LNG price assessments reflecting the value of spot cargoes delivered into Latin American markets, effective Feb. 1.

Platts would publish the assessment as a differential to Platts NWE, as well as on an outright basis.

Latin American imports have regularly been around 15 million mt/year in the past few years, having also shown the potential to increase significantly depending on weather conditions, and play a very important role in LNG spot market price formation.

With import capacity growing in the years to come, the continent would likely continue to have an important role.

BASIS AND LOCATION: Cargoes delivered ex-ship (DES) to ports in Brazil, Argentina, and Colombia would be considered in the assessment. DES Brazil would be the standard delivery basis of the assessment, to which cargoes delivered to Argentina and Colombia would be normalized.

TIMING: Platts would assess cargoes for delivery in the third, fourth, fifth and sixth half-month cycles forward from the date of publication. The DES Latin America assessment would be based on the average of the two half months that match the NWE delivery month period.

QUALITY: Platts is seeking feedback on the standard GHV range to consider in its DES Latin America assessment.

QUANTITY: DES Latin America assessments would reflect a standard delivered quantity of 2.4 TBtu. Platts is seeking feedback on this as the standard delivered quantity, while also seeking feedback on what the standard operational tolerance should be.

Please send all feedback, comments and questions to LNGeditorialteam@spglobal.com and pricegroup@spglobal.com by Dec. 15.

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 make comments not marked as confidential available upon request.