LNG Quantitative Forward Curves

LNG is the energy market with the most dynamic fundamentals, with multiple, significant moving pieces from the rapid rise of US exports stemming from U.S. shale revolution, the changing European supply and demand dynamics, the evolving nuclear situation in Japan and the rising Chinese appetite for LNG. U.S. exports of LNG commenced in February 2016 with the arrival to the market of the first Sabine Pass cargoes, which increased the global liquefaction capacity by 25%, and by some projections US LNG will rise to nearly 1/3 of all LNG supply.

In response to growing LNG trade volumes, Platts JKM™, and Platts Gulf Coast Marker (GCM) (part of the DLF Market Data Category) provide market-based future LNG prices unparalleled in global markets. DLF offers real opportunities for participation in this emerging spot and derivative market by producers, financial marketers, traders and consumers.

Designed to help clients manage LNG market price risk, LNG Forward Curves provide fair market value-based forward curves for the key LNG trading hubs, Platts JKM™, and North America (FOB USGC), extending over 48 forward months, provide clients with a market value that combines Platts editorial market knowledge and quantitatively-derived forward curves available within DLF. Platts quantitatively-derived forward curves for JKM reflect tenors further out than the following calendar year, while the prompt months, quarters and calendar years are editorially assessed. For Platts GCM the entire forward curve is quantitatively derived.


  • — Make more informed trading and investment decisions
  • — Calculate mark-to-market profit and loss
  • — Calculate key risk metrics, such as value-at-risk
  • — Report the fair value of financial instruments
  • — Validate internally derived forward curves and ensure compliance
  • — Manage counterparty credit exposure
  • — Download and integrate flexible data (delivered daily) into your own system


Platts JKM™ is the LNG (Liquefied Natural Gas) benchmark price for spot physical cargoes. It is referenced in spot deals, tenders and short-, medium- and long-term contracts both in Northeast Asia and globally. The basis of Platts JKM™ is spot cargoes delivered ex-ship into Japan and South Korea, two of the world's largest LNG importers. Deliveries to China and Taiwan are also reflected in Platts JKM.

Platts LNG GCM reflects bids, offers and transactions on an FOB U.S. basis, normalized to the U.S. Gulf Coast, and expressed USD per British thermal units (MMBtu). Customers have expressed a desire to see an active derivative market based on the U.S. Gulf coast market dynamics. GCM forward curves provide a logical settlement price to ICE which will facilitate the development of such a contract.

Clients need to subscribe to the LF market data category as a pre-requisite for DLF. Customers can access the new DLF category by FTP or as part of the PGA Data add-on service. This is also available from our channel partners and through the API. Contact to get started. We will work to ensure your staff has access to the date it requires, distributed in a way that facilitates your company needs.