SUBSCRIBER NOTE: Platts to launch LNG Atlantic FOB marker

Platts requests feedback on a proposal to launch on January 2, 2015, an additional marker to reflect the FOB value of LNG cargoes originating from the East Atlantic. Platts has noted that growing demand from markets in South America and increased European re-export activity to optimize cargoes arriving in both Southwest and Northwest Europe, the region has become a balancing point for cargoes destined for both the Atlantic and Pacific basins. With the increased demand for flexible volumes in both basins, greater spot market liquidity has been seen in FOB transactions. Whether being sold to Brazil and Argentina, or into the Asia Pacific, end destinations for LNG originating in the East Atlantic have grown in diversity and frequency. In addition, while re-exports had previously been most active in Southwest Europe, the entry of more players in the re-export market, such as Gate LNG in Rotterdam, the upgrade of Fos Cavaou to offer full cargoes as well as increased ship-to-ship activity at Montoir have contributed to greater re-export volume. The new assessment is to be called the East Atlantic Market (EAM) The EAM is intended to reflect a transactable value of spot LNG cargoes, freight normalized to a Huelva/Gibraltar loading with a laycan corresponding to the current and front month in half-month increments drawing on volumes originating from the following primary and re-export locations in both North West and South West Europe including the Mediterranean, including FOB cargoes sold on a ship-to-ship transfer basis. Production regions will also be included such as Nigeria, Angola, Algeria and Norway. LNG DES spot transactions, traded in other regions including Middle East and Asia, along with Atlantic delivery to Brazil and Argentina, may be considered in the assessment process when and where appropriate. The assessment process will be in line with existing Platts LNG methodology. Please send comments and feedback by December 19, 2014 to desmond.wong@platts.com, shelley.kerr@platts.com and pricegroup@platts.com. For written comments, please provide a clear indication if the 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.