SUBSCRIBER NOTE: Platts to launch LNG DES Middle East Marker

Following industry consultation, S&P Global Platts will launch on January 16, 2017 the LNG DES Middle East Marker (MEM). The assessment will cover four half-month cycles, beginning two half-months from the date of assessment. For example, in H1 November 2016, Platts would assess the Middle East Marker for H1 December, H2 December, H1 January and H2 January.

The front-month will be assessed as the average of the two half-month cycles compromising the first full month of delivery. For instance, on November 11, Platts MEM (Dec) will represent the average of price assessments for cargoes for delivery in H1 December and H2 December.

Price assessments will be published on the following Platts services: Natural Gas Alert (NGA), Platts LNG Daily, Platts LNG Navigator and Platts Market Data. Assessments will be published each business day and reflect market values prevailing at the close of markets at 16:30 London time. The assessment will be made on a delivered ex-ship (DES) basis reflecting deliveries at ports in the Middle East capable of receiving cargoes with a minimum cargo size of 135,000 cubic meters. Laycan is normalized to the geographical location of Ain Sukhna, Egypt, using an assessed deviation cost. All prices for the assessment will be quoted in US dollars per million British Thermal Units ($/MMBtu) to three decimal places.

Platts continues to invite questions and feedback to luke.stobbart@spglobal.com and lng@spglobal.com and copy pricemethodology@spglobal.com